Excerpt from the 1Q18 Witten Advisory: There are a number of reasons not to be concerned about mass moveouts from the apartment market to homeownership. Some of the obstacles to buying a home are highlighted in the above charts.
Even for renters who want to purchase a house, the options are very limited. The upper two charts here show that inventory is extremely low – especially in existing homes.
And while new homes are relatively more available than existing, the price points being served by homebuilders have hit record levels. Inflation-adjusted, today’s median new home price is the highest in the past 40+ years, which further limits the number of people able to afford to buy.