Rising Rent Motivates 1st Time Buyers

According to a recent survey of potential home buyers, the cost of renting is the main motivator for almost half of all first-time buyers and nearly a quarter of respondents overall. That is nearly double what it was last year at this time. That’s mostly due to the fact that, in recent years, rent has been rising at a rapid pace and – despite the fact that home prices have also been increasing – buying a home has generally remained the more affordable choice in many markets. That, and mortgage rates that have been hovering near record lows for some time now, are driving renters to the housing market. But that doesn’t mean there still aren’t concerns about the cost of buying a home. In fact, affordability was named by 28 percent of survey participants as their top concern, with too much competition and a lack of homes to choose from following close behind. For first-time home buyers, in particular, affordability is a growing worry. For that reason, inventory levels and new home construction are the keys to the current housing market. As more homes become available for sale, the rate of price increases should begin to moderate, which will help balance the market and provide more opportunities for buyers. More here.

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