Housing demand remains strong amid tight supply, a tight credit market and low-interest rates, while major urban areas experience higher-than-average vacancy rates and declines in rent as renters
Housing Prices Likely To Remain High As Supply Remains Low
Dated: June 17 2021
Housing demand remains strong amid tight supply, a tight credit market and low-interest rates, while major urban areas experience higher-than-average vacancy rates and declines in rent as renters shift to suburban markets.
However, the pandemic has not only created a shift in demand; it has also shone a brighter light on housing disparities. Data from the report note that households of color and renters are more likely to be behind on payments — a concerning factor as forbearance and eviction moratoria policies begin to expire. Many households were already cost-burdened — i.e., paying more than 50% of their income toward rent — prior to the pandemic, placing additional financial burden on them. Overall, 17% of renters are in arrears, with a greater percentage of Black (29%), Hispanic (21%) and Asian (18%) renters behind in payments than white (11%) renters.
“The best solution to tame recent unsustainable gains in home prices, and to similarly ease rent burdens is more supply: more single-family and multifamily construction and more remodeling of the existing housing stock,” (Rob) Dietz added.
Read the full article here: https://nahbnow.com/2021/06/housing-prices-likely-to-remain-high-as-supply-remains-low-disproportionately-affecting-minorities/?utm_source=linkedin&utm_medium=Social&utm_campaign=Social2021
Download the report from Harvard University’s Joint Center for Housing Studies (JCHS): https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_State_Nations_Housing_2021.pdf