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News Middle Income Home

Middle-Income Home Buyers Struggling to Find.....​

News Middle Income Home, In the current real estate market, middle-income home buyers in the United States are facing some challenges when it comes to finding suitable properties. The National Association of Realtors and Realtor.com recently conducted an analysis that revealed a severe shortage of affordable homes for this income bracket, with over 300,000 homes missing from the market.

News Middle Income Home - Limited Options for Middle-Income Home Buyers

A middle-income home buyer, defined as someone earning up to $75,000 annually, which is the median household income in the United States, can comfortably purchase homes valued up to $256,000 without straining their budget. However, the availability of homes in this price range has significantly decreased over the past few years.

At present, middle-income buyers can only afford around 23% of the listings currently on the market. This is a significant drop from five years ago when they could afford to purchase 50% of available homes. The shortage of homes in this price range is creating a challenging situation for these buyers, hindering their ability to build wealth through homeownership.

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In April 2023, there were approximately 1.1 million homes available for sale, marking a 5% increase from the previous year. However, only a fraction of these homes are accessible to middle-income buyers, despite the fact that nearly 51% of households earn $75,000 or less. In a balanced market, these households should be able to afford 51% of the homes available for sale. Unfortunately, this is not the case.

Affordable Homes: Ohio Leads, El Paso Lags

Nadia Evangelou, the NAR senior economist and director of real estate research, expressed concern about the housing shortage faced by middle-income buyers. She highlighted the fact that even with the current level of listings, the affordability and shortage issues would not be so severe if there were enough homes available across all price ranges.

According to the report, the United States needs to add at least two affordable homes for middle-income buyers, priced up to $265,000, for every home listed for upper-income buyers priced above $680,000. News Middle Income Home, While the housing shortage affects all income levels, the gap narrows at higher income levels. For instance, buyers earning $250,000 annually can afford to purchase 85% of the listings, although it falls short of the balanced market requirement of 93%.

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To address the challenges of affordability and limited supply, Evangelou emphasized the need for a two-fold approach. Increasing the supply alone is not sufficient; there must be an emphasis on boosting the number of homes available at price ranges that align with most people’s affordability.

Home Insurance Crisis Threatens Vulnerable Communities

Among the 100 largest metro areas in the United States, three Ohio metro areas, namely Youngstown, Akron, and Toledo, have the highest number of homes affordable for middle-income buyers. In a balanced market, buyers earning $75,000 could afford to purchase 66% of the listings in the Youngstown metro area. Currently, News Middle Income Home can afford to buy 72% of the listings, indicating the availability of approximately 70 additional listings with prices lower than $250,000.

On the other end of the spectrum, El Paso, Texas; Boise, Idaho; and Spokane, Washington are the cities with the fewest affordable homes for this income group. In Boise, News Middle Income Home, buyers earning $75,000 can only afford to purchase 2% of home listings, whereas in a balanced market, they could afford over 50%. This signifies a scarcity of approximately 2,120 listings that would align with their affordability.

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Despite the challenges posed by high housing costs and limited availability, there is still hope for prospective buyers. Overcoming affordability constraints may lead buyers to explore newly constructed homes or consider properties in suburban areas and beyond. These alternatives could offer more realistic opportunities for homeownership in the near future, as stated by Danielle Hale, Realtor.com’s chief economist.

As a real estate agent, it’s important to acknowledge the current market conditions and the difficulties middle-income home buyers are facing. However, News Middle Income Home, by leveraging my expertise and market knowledge, I can assist sellers in positioning their homes strategically to attract potential buyers who are seeking a good deal in this declining market. Likewise, for buyers looking to make a purchase, I can guide them in finding hidden gems or negotiating favorable terms and prices. Despite the challenges, opportunities still exist for both sellers and buyers in this evolving real estate landscape.

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Robert Lesher

Keller Williams Realty

Cell:(302) 604-9234 Preferred

Office: (302) 360-0300

37169 Rehoboth Avenue Rehoboth Beach, DE 19971

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