Housing Affordability is an Issue for All Age Groups
New research conducted by NAHB shows that prospective home buyers in all age categories are wrestling with affordability issues. The latest quarterly Housing Trends Report spanning the last three months of 2018 reveals that 75-78 percent of buyers in each generation can afford fewer than half the homes available in their markets.
New construction single family homes priced $225,000 – $275,000 has been missing in the Kansas City market for the past decade,” said Shawn Woods, HBA president and president of Ashlar Homes. Projects in this price range that are aimed at middle-income families are the missing link for creating a fully functioning housing market.”
When a complete mix of housing choices are available to a community, you start to build future demand for higher-end homes, according to Woods.
Typically, once families plant roots in a community they remain there for a considerable amount of time due to schools, work and friends. Once their roots are planted in these other communities, they are highly likely to stay in those areas — even as their buying power expands to a $300,000, $400,000 or even $500,000 home.
“While families tend to stay in the communities they start in, they usually only stay in a home for five to seven years,” said Woods.
The HBA is committed to working with cities to ensure they remain exciting and vibrant in the future, but HBA members must have support from city councils and current residents in order to accomplish this goal.