By Melissa Cantor, Editor at LinkedIn News
Middle-income buyers face a more severe housing shortage than any other income bracket, according to new data from the National Association of Realtors. NAR researchers say households earning up to $75,000 a year — the median household income in the U.S. — can comfortably purchase homes priced up to $256,000. Unfortunately, that represents only 23% of the homes currently for sale. In a balanced market, close to half of properties would be accessible to average buyers, NAR said, meaning the current market is short about 320,000 affordable homes.
By Jaren L. Davis
EO Salt lake Home Builders Association
Recently, I had the privilege of hearing Laurie Goodman of the Urban Institute deliver a keynote address to the Housing Finance Committee for the National Association of Home Builders (NAHB). Her findings struck a chord with industry practitioners, as she dove into the root causes of our housing affordability crisis. This crisis, she posited, is fueled by factors such as rising land costs, stringent regulations, and a labor shortage, all converging to escalate costs and restrict supply—resulting in immense market pressure.
Imagine a world where we once added eight homes per thousand residents, catering adequately to the needs of our society. Yet today, we manage to add only five homes per thousand. The numbers are indeed alarming. Laurie proposes a nationwide shortage of 3.8 million units, whereas the National Association of Realtors suggests a deficit of 5.5 million units over the last two decades compared to the average of the preceding three decades. Regardless of the precise figures, one thing is clear: we’re confronting a critical housing shortage, with the reasons well-delineated.
The housing affordability crisis is a pressing issue that affects various income brackets, including middle-income buyers. In Sydney, custom home builders like Allcastle Homes understand the need for solutions that cater to diverse income levels. By offering customizable home designs and flexible options, custom home builders sydney contribute to addressing the housing shortage and affordability challenges. Their expertise in navigating factors such as land costs, regulations, and labor shortages allows them to provide quality homes that meet the specific needs of buyers. Through their commitment to innovation and adaptability, custom home builders in Sydney contribute to the ongoing efforts of improving housing accessibility and affordability for individuals and families in need.
Now, as the Millennial generation embarks on their home buying journey, they’re met with an intimidating landscape. A sea of aspiring homeowners finds itself at the mercy of an increasingly inaccessible housing market.
But I remain hopeful. Why? Because I see a community willing to work together to combat this crisis. I envision a future where we’re not just passive observers but active participants in the solution. It’s not just about them “figuring it out”, as some might suggest. It’s about us—parents, grandparents, and concerned citizens—recognizing our shared responsibility.
Let’s consider this: if we adjust the cost paid by the baby boomer generation for their homes to today’s dollars, we find our children facing prices that are nearly double what we encountered. That’s the stark reality for new homebuyers today.
The time to act is now. Let’s come together, bring our passion and collective resources to bear, and enact the necessary changes to make homeownership attainable for everyone. The future of housing depends on us. Your support, engagement, and advocacy will make all the difference. We can build a more affordable tomorrow.
Additionally, as we address the broader housing challenges, we must not overlook the crucial aspect of home maintenance, such as roofing. A reliable roof is a fundamental component of a secure and comfortable home. It not only protects us from the elements but also contributes to the overall value of our properties.
In this endeavor, I urge our community to consider the significance of proper roofing in ensuring the longevity and safety of our homes. San Antonio Roofing plays a vital role in this equation, and by prioritizing quality roofing solutions, we can enhance the resilience and sustainability of our housing infrastructure.
Together, let’s build a more affordable and enduring future for homeownership, with a steadfast commitment to addressing not only the cost but also the essential elements like roofing that make a house a secure and lasting sanctuary.
#homebuyers #community #housing #future
By Lisa Keating
Sotheby’s International Realty Relocation Waterfront
Is this all a New Home Buyer can afford, Support Workers, College Graduates? What are your thoughts for our West Palm Beach area.
Enterprise Account Executive at Spruce
Housing affordability continues to exacerbate in the US. While we can speculate about the future of interest rates, we can focus on what we can control – build more housing.
Any new housing is good housing, solving the affordability crisis requires a partnership with our local leaders to make it easier for developers to build more. #housing #affordablehousing #affordability #mortgage
There Are Only Four Major U.S. Metro Areas Where It’s Cheaper to Buy a Home Than Rent
redfin.com • 6 min read
There Are Only Four Major U.S. Metro Areas Where It’s Cheaper to Buy a Home Than Rent
A recent analysis by the National Association of Realtors® (NAR) and Realtor.com highlights a pressing issue in the U.S. housing market: a shortage of over 300,000 affordable homes for middle-income buyers. Compared to five years ago, middle-income households can now only afford 23% of current listings, a significant drop from the previous 50%. To address this challenge, NAR emphasizes the need to increase the number of homes priced at $256,000 or below, catering to the financial capabilities of middle-income buyers, who make up a substantial portion of the market.
This shortage of affordable housing has a profound impact on middle-income Americans, limiting their opportunities for homeownership and wealth accumulation. While the housing inventory has seen a slight increase of 5% year-over-year, the market is still missing nearly 320,000 home listings within the affordable price range for middle-income buyers. Nadia Evangelou, NAR senior economist, emphasizes the importance of a dual approach to tackle affordability and supply issues, stressing the need to add at least two affordable homes for every home listed for upper-income buyers.