Housing Affordability is an Issue for All Age Groups

Filed in Economics, Housing Trends by on February 11, 2019 8 Comments

New research conducted by NAHB shows that prospective home buyers in all age categories are wrestling with affordability issues.

The latest quarterly Housing Trends Report spanning the last three months of 2018 reveals that 75-78% of buyers in each generation can afford fewer than half the homes available in their markets.

Share Who Can Afford Fewer than Half the Homes For-Sale By Generation
(Percent of Prospective Home Buyers)
 

The survey also shows that more than three out of four buyers (76%) say they can afford fewer than half the homes for sale in their markets.

NAHB economist Rose Quint provides more details in this Eye on Housing blog post.

 

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  1. Catherine Viviano says:

    I am a custom builder in Houston. I am also a woman. I am also a Democrat. My husband owned a mortgage company for 28 years, so I do have a daily good handle on this subject.

    I don’t think the building industry should be particularly surprised that housing is unaffordable for those reaching retirement and those coming of home buying age. It’s been a long-time in the making. I have two sons who are Millennials and both are saddled with a large amount of student loan debt from graduate school and medical school. The interest rates on the loans are twice as high as other loans.

    I noticed that the NAHB supported the majority of Republican candidates in the past election. You can continue to support people who believe in trickle down economics, but your own data proves it doesn’t work. The growing wage gap and income inequality is affecting housing. Call it what you want, but people need to be able to qualify. If they carry too much debt vs. income, ratios are off and they can’t get a loan. If they have ever missed a payment on a debt, even revolving debt, their credit scores will be low. I could go on and on.

    You need the middle class to be strong to keep your organization alive. Wealthy people aren’t buying track homes, nor are they getting mortgages. They pay cash or they get bank loans. So, you can continue to vote for people who support ideas and tax benefits for the top 10%, but that’s not your overall market. The housing industry needs the middle buyer and they aren’t being helped.

    • Tana Van Cleave says:

      Catherine,

      I can’t tell you how wonderful it is to see your perspective and I agree 100%! Thanks for expressing! Trickle down is and always has been a wonderful fantasy the rich tell the wanna-bes to maintain status quo!

      Tana Van Cleave

  2. dear Catherine v. overegulation runs about 26% per house. why don’t you call your democratic senators and representatives and cut out the overegulations and your buidler will be able to reduce your costs by an equal amount. uncle Sam used to get all the margin on every third house i built now he is dipping into every second one. you may agree that is a little too much. yes it was so much i just retired after building over 400 homes. be glad to talk to you in person.

  3. NAHB Now says:

    Catherine,
    As a point of clarification, NAHB’s political action committee, BUILD-PAC, supports pro-housing candidates from both parties, as well as those in leadership. While Republicans have controlled Congress for the past few political cycles, the 2018 midterm elections brought significant changes to the electoral map and a divided Congress. NAHB will continue to work with Congress and support those lawmakers in a position to help us advance a pro-housing agenda.

  4. Alyce McElhoes says:

    I am also a female builder of 30 years & a republican. When I have work I hire workers & they make good money off my jobs. Sometimes they make more than I do, if I can’t sell the house for a fair profit. I’ve never understood what is hard about this math. Also, if a building code is upgraded, as they are every few years, the regulations get tougher and the building gets more expensive. That is also simple math. If those at the top don’t have money to provide jobs for other people, the buck ends there. Look at the housing market when a republican is in office versus a democrat, it’s obvious what works better. By the way my kids have degrees with some school loans, jobs, and are working with me to buy land an build their first homes. They’ll make it work with their own hard work.

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