Recent survey findings call to attention the glaring need for more supply of single-family homes. Eighty-five percent of current homeowners and 75 percent of renters said they would purchase a single-family home, while only 15 percent of homeowners and 21 percent of renters said that would buy in an urban area.
“The American Dream for most consumers is not a cramped, 500-square-foot condo in the middle of the city, but instead a larger home within close proximity to the jobs and entertainment an urban area provides,” says NAR’s chief economist Lawrence Yun. “While this is not a new discovery, supply and demand imbalances and unhealthy levels of price growth in several metro areas have made buying an affordable home an onerous task for far too many first-time buyers and middle-class families.”
Yun suggests it is time for homebuilders to increase their focus on constructing single-family homes. As millennials enter the suburban market, tighter inventory and affordability concerns will likely expand, unless headway is made in housing parallel to job creation. On the whole, renter sentiment does not seem to see now as a good time to buy heading into the spring. NAR’s survey found that compared to the December 2015 survey, the same share of homeowners (82 percent) but fewer renters (62 percent versus 68 percent last quarter) believe that now is a good time to buy.
Whether you are looking to buy a home in the heart of the city or in suburbia, please feel free to reach out to me. Together we will figure out which type of loan is best for you so that you can purchase your dream home!