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Here's What's Happening In The Market, Here’s What This Means For You
New Data Show Growing Problem for Home Buyers and Builders
But bad news on that end may be good news for SFR, BTR, and multifamily investors.
The American dream of owning a home continues to become more of a pipedream, according to new data from two sources. But bad news on that front might be good news in multifamily, single-family rental, and build-to-rent.
According to the National Association of Realtors and its Housing Affordability Index, housing affordability fell month over month in January. Compared to December, monthly mortgage payments increased by 3.4% while median family income was up only 0.5%.
In a year-over-year look, the news is worse. Compared to one year ago, affordability declined in January as the median family income fell by 4.5% while the monthly mortgage payment increased 27.0%. The effective 30-year fixed mortgage rate was 3.51% this January compared to 2.79% one year ago, and the median existing-home sales price rose 15.9% from one year ago.
While this is bad for those catering to buyers, the same conditions make rental an only option for millions of families. That should further increase demand for multifamily apartments, single-family rentals, and build-to-rent communities.
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