This is a narration of our weekly Rent and Operating Trends Report.
Home prices rose to an all-time high in May according to data released by the National Association of Realtors last week. The median home price in the U.S. is $419,300, up more than 55% from its pre-pandemic level. Not only are prices at all time highs, but mortgage rates that have remained around 7% have made homebuying exceedingly difficult for many Americans. As such, existing home sales fell for the third consecutive month. Housing affordability and the undersupply of housing is becoming a growing issue as the election nears. Gen Z voters have voiced that housing affordability is the issue they care most about in the upcoming election, and it will be widely discussed on the campaign trail. Despite the boom in multifamily development, we remain in a housing shortage nationwide. As demand remains elevated, new apartment units will be absorbed, as the debate over housing affordability and development will continue to intensify.
The multifamily sector has seen firsthand how supply and demand impact pricing in housing. As supply has increased, rents and occupancy rates have fallen while concessions have increased quickly. The consumer has had the upper hand in many markets, especially in the sunbelt over the past 2 years. We can see the demand for housing very clearly, we just need to counter the demand with more housing supply. All types of housing will be needed to solve the affordability issue. Single family for sale, single family rentals and apartments will all contribute to easing the affordability challenges, and the onus is on local governments and communities to accept, approve and promote development of new housing.
Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
