title
February 2017   Volume 43, Number 2      
 

First-Time Homebuyers Struggle to Find Affordable Homes to Purchase

It’s getting harder for first-time homebuyers to purchase homes in the U.S. The supply of affordable homes available to these buyers remains low and is actually worsening, according to the latest data from real estate site Trulia.

In 2016, the number of affordable homes on the market experienced its largest year-over-year decline in three years, falling 12.1 percent. However, there is good news given that wages have started to rise for younger home shoppers after stagnating for many years after the Great Recession.

Although incomes are increasing, home prices have risen even faster in many cities throughout the country, which is making homeownership unaffordable for many first-time homebuyers. On average, a first-time buyer has to pay up to 39 percent of their monthly income to afford the median-priced starter home. In addition, mortgage lenders are maintaining strict credit and income standards when approving mortgages.

However, homebuyers who are upgrading to larger homes have the advantage. A homeowner looking to buy a larger home just needs 25.5 percent of his monthly income in order to afford a larger home. Buyers at the high end of the market only need 14 percent of their monthly income in order to afford a premium home.

Starter homes continue to be affordable in much of the South and Midwest. However, in the priciest markets, the cost of a median-priced starter home is higher than the local median income, according to data from Trulia.


 

 

 

 

In this issue:

Tiny Home Neighborhoods Are Popping up Across America

Chinese Developers Reassess U.S. Projects

Commercial Real Estate Market Sees Mixed Results After Election

First-Time Homebuyers Struggle to Find Affordable Homes to Purchase

Hiver CEO Predicts Major Tech Trends in Real Estate for 2017

Homebuilder Confidence Has Increased, but They’re Not Building New Homes

Newly Created S&P 500 Real Estate Sector Continues to Decline

Redfin Predicts 2017 Will Be the Fastest Housing Market on Record

Russian Interest in U.S. Real Estate Increases After Trump Election

Rising Sea Levels Are Forcing Agents to Rethink How They Sell Coastal Properties

 


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher's permission. All rights reserved. ©2017 The Insurance 411. Tel. 877-762-7877. theinsurance411.com