August 12, 2016 Comments Off on What’s Happening to the Supply of Starter Homes? Views: 405 California News, Midwest, National News, Northeast, Southeast, Southwest, Texas, West

What’s Happening to the Supply of Starter Homes?

In Austin, Texas, as well as many markets around the United States, finding a starter home is proving to be a difficult task.

There are several factors contributing to the low supply of affordable houses ready for first-time buyers, including:

  • Nearly 1/5 of all homes under $300,000 are owned by corporations and companies who rent them out
  • From June 2015 to June 2016, there’s been a greater than 12% decrease in the inventory of homes priced at $250,000 or less
    • labor, land and building permit costs have increased, so many construction companies are focusing on building more expensive homes
  • Case-Shiller U.S. National Home Price Index increased more than 25% between 2000 and 2014, while average hourly wages have fallen
  • Large-scale investors often outbid individual buyers when making their all-cash offers to purchase a home
  • Construction labor supply shortage is contributing to lower housing starts

Read More at Reuters

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For comments, questions or concerns, please contact Daniella Soloway

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