US lacks 320,000 affordable homes

The US housing market is facing a serious shortage of affordable homes, according to a report by the National Association of Realtors (NAR) and Realtor.

The US housing market is facing a serious shortage of affordable homes, according to a report by the National Association of Realtors (NAR) and Realtor. The report shows that the country is short of about 320,000 homes priced under $256,000, which is considered reasonable for homebuyers with an annual income of no more than $75,000. This group of customers is classified as "middle income" and they can only afford 23% of ready-made homes for sale across the country. This figure has declined by half from five years ago.

The shortage of affordable homes has been a persistent problem in the US for many years. However, the pandemic has made this issue even more critical, as it has heated up the real estate market. Many people have been unable to buy houses due to high anchor prices and rising interest rates. Homeowners are also reluctant to sell because they used to enjoy loans with low-interest rates. If they decide to change the house now, they will have to pay a higher interest rate.

Moreover, the report also found that homebuyers need to earn at least $125,000 a year or more to access half of the homes on the market. This means that many middle-income households are priced out of the market, leaving them with limited options when it comes to buying a house.

The shortage of affordable homes is not only a problem for middle-income households, but it also affects the economy as a whole. Housing is a vital sector that drives economic growth, and a shortage of affordable homes could hinder economic development. It can also lead to social problems such as homelessness and overcrowding.

To address this issue, policymakers should consider implementing measures to increase the supply of affordable homes. Initiatives such as subsidies for developers to build low-priced houses can help increase the availability of affordable housing. In addition, policymakers can also consider improving existing programs such as the Low-Income Housing Tax Credit (LIHTC) to encourage investment in affordable housing.

The shortage of affordable homes in the US is a significant problem that needs urgent attention. It not only affects the middle-income households but also has implications for the economy and society as a whole. Policymakers should consider implementing measures to increase the supply of affordable homes to address this issue.