Homeownership Dreams Put On Hold by Buyers in Popular Metros

For the past several years, homebuyers have confronted a series of roadblocks on the path to homeownership, forcing some to put off their homebuying plans indefinitely. Elevated demand mixed with inadequate supply caused home prices to surge during the pandemic, and even in a cooling market, affordable homes are few and far between, The Guardian reports.

Instead, mortgage rate hikes are creating even more strife for buyers who have already raised their budgets and sacrificed their must-have home amenities to become homeowners at whatever cost necessary. In popular markets like Austin, a market slowdown doesn’t equate to price reductions. The median sale price hit a new peak of $676,000 in May, a gain which subsequently put pressure on the rental market and sent the median rent above $2,700. Rather than focusing their efforts on buying homes, Austin residents are simply avoiding displacement, but they may ultimately be forced to relocate for affordability.

And even though Austin’s June home inventory doubled over the prior year as interest rate hikes cooled demand, supply is only increasing for the wealthiest buyers.

The portion of national listings that someone earning $75,000 annually could afford dropped from 40% to 25% between January and June as home prices and mortgage rates climbed, National Association of Realtors’ (NAR) data shows. 

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