Perhaps one of the biggest, most overwhelming, and fastest changing element in our economy is the housing market. One day you think it makes sense and then all of a sudden it’s changed again. Whether you’re renting, buying, or looking to invest, here’s some insight on today’s market. For now.
Homeownership is on the Rise
Over the past two years, rates of homeownership have been rising. The amount of people buying homes fell drastically during the financial crisis. In 2018, 64.4% of all U.S. households were represented by ownership. That rate rose half a percent from the previous year, resulting in 1.6 million households who closed on properties. (It’s reported that this is even higher than the housing boom of the mid-1990s.)
Fewer People are Renting
This one goes hand in hand with point one: when rental rates are down, homeownership is on the rise. Rental rates continue to rise, where homeownership is typical more of a fixed payment. As Realtor.com reports, the number of households renting fell by 110,000, to 43.2 million, from 2017 through 2018. That’s in stark contrast to the previous 12 years, when the number of tenants grew by nearly 850,000 households annually.
Construction Rates Have Slowed
Yes, in 2018 the number of new homes completed was up 2.8% from the previous year, but that number is still the lowest it has been since 2012. Experts site this decline as a result of many things: increasing land prices, lots of red tape getting permits and following code, and expensive material and labor costs.
These are just a few of the ever changing facets of the real estate market. To read the other three, click here. Or, if you’d like to discuss whether now is the right time for you to buy (or sell!), contact us today! We’d love to put you in your dream home or help you sell.