You’ve read the headlines: homeownership is on the decline. But what are the numbers backing this trend?
The combination of a rising interest rate environment and a low inventory of entry-level homes in the U.S. have taken a toll on the single-family market, setting the stage for a steady decline in single-family home sales. The lack of affordable homes has, in turn, increased the demand for multifamily housing options.
According to the National Association of Realtors, since August 2016, the year-over-year increase of home prices have topped 5% each month while totaling existing home sales continue to fall. Additionally, the median existing-home price for all housing types in September was $258,100, up 4.2% from one year ago.
Despite a small increase from 2017 to 2018, the current state of existing home sales is the lowest it has been since November 2015. With the cost of borrowing expected to become increasingly expensive, homeownership will be even more improbable for many Americans, supporting elevated rental demand.
Interested in learning more about the CRE trends we are tracking? Make sure to download our quarterly multifamily outlook report.
Walker & Dunlop is one of the largest multifamily lenders to property owners.