Homebuyers think availability, affordability issues to continue in 2018

by Francis Monfort19 Jan 2018
While a majority of homebuyers believe availability and affordability issues will not ease in 2018, they remain committed to their goal of purchasing a home, according to survey results released by the National Association of Home Builders (NAHB).

The survey revealed that 65% of homebuyers do not think conditions will improve in 2018, with 79% of prospective buyers surveyed being able to afford only half of the homes in their markets.

Rose Quint, assistant vice president of survey research for the NAHB, said the survey findings show that housing availability and affordability continue to be serious issues.

“These potential buyers see a problem with housing availability,” Quint said. “They know it’s a tough nut to crack, but they are not deterred. They are still planning to buy a house in the next 12 months.”

The NAHB said that although housing starts rose by 9% year over year in 2017, home production was still affected by the lack of affordable, buildable lots and the scarcity of labor. Characteristics of new homes were also essentially unchanged in 2017. NAHB said that home sizes averaged 2,627 square feet in 2017, remaining largely the same as the 2,622-square-feet average size in 2016.

Meanwhile, NAHB noted a potential market for tiny houses with sizes of 600 square feet or less. According to the survey, 53% of homebuyers might consider buying a tiny house at some point in their lifetimes. NAHB also found that Gen Xers and millennials are more open to the idea compared to baby boomers and seniors.

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