The lack of available homes for sale is not a new problem. Home buyers have been dealing with low inventory for years now. It was the primary reason prices surged during the pandemic and, even after last year's market volatility, it continues. But while the number of available homes for sale has been low overall, according to one new analysis, it is hitting a particular income bracket harder than any other.
The National Association of Realtors' Housing Affordability and Supply report found that middle-income home buyers face the biggest shortage of homes. In fact, according to the report, the market needs an additional 320,000 homes priced below $256,000 to satisfy demand from buyers earning a household income under $75,000.
“Middle-income buyers face the largest shortage of homes among all income groups, making it even harder for them to build wealth through homeownership,” Nadia Evangelou, NAR senior economist and director of real estate research, said. “We must boost the number of homes at the price range that most people can afford to buy.”
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