Housing affordability has a different meaning than affordable housing, especially when it comes to doing your research. Some markets are better for home buyers while others offer better rental situations for those who are priced out or unable to come up with the funds for a sufficient down payment. Whether you agree with the “buy vs rent” situation or not, the decision often comes from necessity.
The research chart linked below shows the differences in ‘home price to income’ ratios around the country. It makes it quite clear that there are affordability challenges in the “expected” locations including Southern California, Florida, and the NYC tri-state areas. Understanding this research can help you to understand your mission whether you are a real estate broker, investor, landlord, or developer. It can also impact how you market your brand, properties, and opportunities in the foreseeable future.
If you are looking to move or relocate to a specific city or area, the info may help you to determine which path is best for the moment. (You also have our exclusive “rent vs buy” calculator on the Firstin.com site.) If you are an investor or developer, current trends favoring renting or buying could be used to influence your decisions as to whether to build or renovate to sell or as a “Rent to Buy” opportunity.
Real estate brokers could better position themselves with potential clients. While many do not wish to work with renters, doing so could set them up for future buyer transactions. This is one of the areas that I help agents and brokers with one on one.
The featured trend echoes Harvard’s 2024 findings that just over 10% of adults moved during the entire year, one of the lowest percentages in recent years. It tells me that the majority of your target audience needs to be marketed about advantages and reasons for changing their residence.
Formulating the best possible strategies for your situation which offer the best solution to your target audience is crucial under current market conditions. It’s about being “first in” with the right opportunity!
