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Redfin's report reveals that nearly 40% of homeowners in the U.S. wouldn't be able to afford their own home if they were to purchase it today, citing the doubling of home prices over the last decade and record-high monthly housing costs. The survey, conducted by Qualtrics, highlights the impact of rising prices and mortgage rates on homeowners' affordability.
Il rapporto di Redfin rivela che quasi il 40% dei proprietari di casa negli Stati Uniti non sarebbe in grado di permettersi la propria abitazione se dovessero acquistarla oggi, citando il raddoppio dei prezzi delle case nell'ultimo decennio e i costi abitativi mensili mai così elevati. L'indagine, condotta da Qualtrics, evidenzia l'impatto dell'aumento dei prezzi e dei tassi ipotecari sulla capacità di acquisto degli attuali proprietari.
El informe de Redfin revela que cerca del 40% de los propietarios en los EE. UU. no podrían permitirse comprar su propia casa si tuvieran que hacerlo hoy, citando el doble incremento en los precios de las viviendas en la última década y los costos mensuales de vivienda en máximos históricos. La encuesta, realizada por Qualtrics, destaca el impacto del aumento de precios y las tasas hipotecarias en la accesibilidad de los propietarios.
Redfin의 보고서에 따르면 미국의 거의 40%의 주택 소유자들이 오늘 그들의 집을 재구매할 여력이 없다고 밝혔으며, 지난 10년간 주택 가격이 두 배로 증가하고 기록적인 월간 주거 비용 때문이라고 지적했습니다. Qualtrics가 실시한 이 조사는 가격 상승과 모기지 이자율의 증가가 주택 소유자들의 구매 능력에 미치는 영향을 강조합니다.
Le rapport de Redfin révèle que près de 40% des propriétaires aux États-Unis ne pourraient pas se permettre d’acheter à nouveau leur propre maison aujourd’hui, citant le doublement des prix des logements au cours de la dernière décennie et les coûts de logement mensuels record. L'enquête, menée par Qualtrics, met en lumière l'impact de la hausse des prix et des taux hypothécaires sur l'abordabilité pour les propriétaires.
Laut einem Bericht von Redfin könnten fast 40% der Hausbesitzer in den USA ihr eigenes Zuhause heute nicht mehr leisten, wenn sie es erneut kaufen müssten. Als Gründe werden die Verdoppelung der Hauspreise im letzten Jahrzehnt und die Rekordhöhe der monatlichen Wohnkosten genannt. Die von Qualtrics durchgeführte Umfrage unterstreicht die Auswirkungen steigender Preise und Hypothekenzinsen auf die Erschwinglichkeit für Hausbesitzer.
Positive
The survey conducted by Redfin indicates that 38% of homeowners feel they couldn't afford their home if they were to buy it today.
59% of homeowners who participated in the survey have lived in their home for at least 10 years, witnessing a doubling of median home prices in the last decade.
Home prices have increased by nearly 50% in the last five years, driven by factors such as the pandemic-induced buying boom, supply shortages, strong labor market, and population growth.
Rising mortgage rates also contribute to the affordability challenge, making it harder for many homeowners to purchase their own homes today.
Negative
None.
Insights
The data from Redfin indicates a significant disconnect between historical home affordability and current market conditions. This trend has implications for the broader housing market, as homeowners who perceive their homes as unaffordable may be less likely to move, potentially reducing transaction volumes and contributing to a deceleration in home price appreciation. Retail investors should be mindful of how this sentiment could affect real estate-related stocks and the performance of housing market ETFs. This shift can also impact consumer spending, as high housing costs may limit disposable income, tangentially affecting retail and consumer discretionary sectors.
A report highlighting a potential affordability crisis suggests that the housing market dynamics are changing. The supply and demand imbalances that led to rapid home price appreciation are pivotal to understanding future trends in real estate. If wages don't keep pace with housing costs, there may be a long-term market correction. Retail investors should pay attention to these developments, as they can influence interest rates and monetary policy, with broader implications for the stock market. Inflationary pressures from high real estate values can prompt the Fed to adjust policies, which in turn affects the performance of various sectors, especially those sensitive to interest rate changes.
The sentiment expressed in the report can act as a leading indicator for future housing demand. If a significant percentage of homeowners feels locked into their current homes due to affordability constraints, it could signify a cooling period for the housing market. This could stabilize home prices, but also lead to a decrease in home improvement spending as homeowners may choose to not invest in properties they consider overvalued. Retail investors with interests in home improvement retailers, mortgage lenders and construction companies should closely monitor this sentiment shift, as it could presage a more conservative approach to home-related investments by consumers.
Redfin reports many U.S. homeowners wouldn’t be able to afford to buy their home if they were to purchase it today because home prices have doubled over the last decade, and monthly housing costs are at an all-time high
SEATTLE--(BUSINESS WIRE)--
(NASDAQ: RDFN) — Nearly two of every five (38%) homeowners don’t believe they could afford to buy their own home if they were purchasing it today, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
This is based on a Redfin-commissioned survey of roughly 3,000 U.S. residents conducted by Qualtrics in February 2024.
Nearly three in five (59%) homeowners who answered this question have lived in their home for at least 10 years, and another 21% have lived in their home for at least five years. That means the majority of respondents have seen housing prices in their neighborhood skyrocket since they purchased their home: The median U.S. home-sale price has doubled in the last 10 years, and has shot up nearly 50% in the last five years alone.
Home prices have soared over the last decade for several reasons. Already-high home prices skyrocketed during the pandemic, when remote work and ultra-low mortgage rates motivated many Americans to move and buy homes. Even before the pandemic buying boom, home prices were increasing due to a prolonged supply shortage, along with a strong labor market and growing population pushing up demand.
Rising mortgage rates are another reason many homeowners couldn’t afford their own home if they were to buy it today. The typical person purchasing today’s median-priced home for about $420,000 has a record-high $2,864 monthly housing payment with a 7.1% mortgage rate, the current 30-year fixed-rate average. If they were to purchase a home for the same price with a 4% mortgage rate, which was common in 2019, their monthly payment would be $2,210, roughly $650 less.
“Rising home prices are a double-edged sword. On the one hand, Americans who already own homes benefit from rising values and they can consider themselves lucky they broke into the housing market while they could still afford it,” said Redfin Senior Economist Elijah de la Campa. “On the other hand, price appreciation makes the prospect of buying a new home daunting or even impossible for many people who want to move. Prices have risen enough that a similar home and location would be much pricier than a home someone already owns–even accounting for inflation. Add elevated mortgage rates to the equation, and moving up to a bigger, better home is even more costly and perhaps out of reach.”
The situation is especially dire for first-time buyers, who haven’t built up equity from the sale of a previous home. Nearly 40% of U.S. renters don’t believe they’ll ever own a home, up from 27% last year. Of the Gen Zers and millennials who do expect to buy their first home soon, more than one-third (36%) expect to use a cash gift from family to help with their down payment.
Baby boomers least likely to be able to afford to buy their own home today
Broken down by generation, baby boomers are least likely to be able to afford their current home if they were to buy it today. Nearly half (45%) of baby boomers said they couldn’t afford a similar home in their neighborhood now, compared to 39% of Gen Xers and 24% of Gen Zers and millennials. That stands to reason, as baby boomers are more likely to have bought their home a long time ago for a much lower price. That dynamic contributes to the shortage of homes for sale: Empty-nest baby boomers own twice as many large homes nationwide as millennials with kids, largely because older Americans, with no financial incentive to sell, are hanging onto their homes.
Unsurprisingly, lower-income homeowners are least likely to be able to afford their own home today. More than half (51%) of respondents earning under $50,000 annually wouldn’t be able to afford their home, compared to 34% of people earning $50,000-$100,000 and 21% of people earning more than $100,000.
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
How many homeowners believe they couldn't afford their home if they were to buy it today according to Redfin's report?
38% of homeowners feel they couldn't afford their home if they were to purchase it today based on the survey conducted by Redfin.
What percentage of homeowners have lived in their home for at least 10 years as per the Redfin survey?
59% of homeowners who participated in the survey have lived in their home for at least 10 years, experiencing a doubling of median home prices over the last decade.
By how much have home prices increased in the last five years according to the Redfin report?
Home prices have risen by nearly 50% in the last five years, driven by various factors including the pandemic-induced buying surge, supply shortages, and population growth.
What are some reasons cited in the Redfin report for the increase in home prices?
Factors contributing to the surge in home prices include the pandemic-driven demand, supply shortages, a robust labor market, and rising mortgage rates, making it challenging for many homeowners to afford their own homes today.
