Buyers Say Housing Affordability is Bigger Problem than Inventory

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Housing affordability
Housing affordability

Mike Wheatley at RealtyBizNews wrote, “Home buyers say that affordability is a bigger concern than the lack of homes for sale — the first time since early 2012 that price has trumped inventory in buyers’ minds, according to a new survey

Nearly 33 percent of 1,300 home buyers say that “affordability in the area I want to buy” was the biggest obstacle to a home purchase in November, according to results from Redfin’s Real-Time Buyer Survey. That compares to 11 percent of buyers who cited the biggest obstacle as “not enough homes for sale.”

The survey also identified some of the top home characteristics buyers say they are looking for: short commutes and close proximity to amenities such as coffee shops (36.3 percent) and living in a highly rated school district (21.2 percent). Also, nearly 82 percent of buyers say they are willing to do some work to their home, whether they do it themselves or hire a professional. Only 18 percent surveyed say they want a move-in ready home.

If you can’t buy, then you must rent. However, affordable rental housing is still a big problem in the area and nationwide. Nearly half of all renters (regardless of income level) in the Washington region were cost burdened in 2009-11. That means almost 315,000 households were paying more than 30 percent of their monthly income on rent and utilities. To give you a sense of the magnitude of the problem, there were about a total of 300,000 households in Prince George’s County, Maryland.

Why isn’t the private market filling this gap? The answer is relatively simple. With a few exceptions, the economics do not pencil out. Without subsidy, private developers cannot build or operate a new unit of rental housing at a cost extremely low-income households (ELI) can afford to pay. The bottom line is that median wage growth has been flat for more than a decade in the U.S. and housing costs have trended upward for many more years.

Trusted Home Buyerss is one of the leaders of a nationwide group of thousands of investors who are helping tens of thousands of homeowners every year.  We may not be the “traditional” route, but the reason so many choose too work with us is because we CAN help.

Give us a call today.

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