Interesting that the ratio from home buyers to homes is 2:1. This means that demand for housing will continue to remain high in the near future.
The above combined with high interest rates means that there are a lot of folks unable to afford a new home. Even when new construction surged 21.7% in May, my perception is that these new constructions are not for small affordable housing, but for homes with an average price range of $347,000+.
This is forcing first time home buyers to keep renting in an environment when rents have raised 5% in the past year to an average of $2,045 per month.
The bottom line is that even though, rents continue to increase and home prices remain steadily high. Owning a home is still your best bet to hedge against inflation. Even with interest rates high, you can always re-finance in the future.
Something we all have to pay attention to.
Checkout this article:
