A new report from the National Association of Realtors says America’s Housing market is short more than 300k affordable homes for middle-income buyers. In fact, they say the ongoing housing inventory crunch impacts middle-income buyers more than any other income bracket. The data comes from the NAR and Realtor.com’s housing affordability & supply report which examined the number of listings missing by price range in the current market when compared to a balanced market. They define a balanced market as being one where half of all available homes fall within the price range affordable for middle-income buyers. Indeed…
“Middle-income buyers face the largest shortage of homes among all income groups, making it even harder for them to build wealth through homeownership…A two-fold approach is needed to help with both low affordability and limited housing supply. It’s not just about increasing supply. We must boost the number of homes at the price range that most people can afford to buy.” Said Nadia Evangelou, NAR senior economist and director of real estate research.
Some key points:
- The U.S. housing market is missing about 320k home listings valued up to $256k, the affordable price range for middle-income buyers (households earning up to $75k).
- Middle-income buyers can afford to buy less than a quarter (23%) of listings in the current market. Five years ago, this income group could afford to buy half of all available homes.
- Among the 100 largest metro areas, El Paso, Texas; Boise, Idaho; and Spokane, Wash. have the fewest affordable homes available for middle-income buyers. Conversely, three Ohio metro areas – Youngstown, Akron and Toledo – have the most.