The U.S. Housing Market Is Short About 320,000 Affordable Homes
The U.S. housing market is short about 320,000 affordable homes for middle-income buyers, according to a new report from the National Association of Realtors (NAR) and Realtor.com.
After analyzing data from both real estate resources, the organizations found 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.
“Middle-income buyers face the largest shortage of homes among all income groups, making it even harder for them to build wealth through homeownership,” says Nadia Evangelou, NAR senior economist and director of real estate research. “A twofold 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.”