Only Half of Americans Can Afford an Entry-Level Home: Major Opportunity for the Rental Market
Only 54% of Americans can afford an entry-level home priced at 20% of the median home price in their area, despite the recent drop in mortgage rates. Affordability issues continue to plague the nation’s housing market, and the situation is creating a robust opportunity for rentals.
The consulting group said that the affordability gap has created sizable opportunity for the rental market, saying that it has given rise to “the hottest new home development craze”: newly built neighborhoods consisting entirely of single-family rental homes.
“The lack of affordability nationwide will keep pushing more demand toward renting, especially in the most expensive markets,” the analysts predicted. “Very few homes exist that were purposely built with renters in mind – an opportunity that many companies are now seizing.”