The U.S. housing market is facing a shortage of more than 300,000 affordable homes for middle-income buyers, according to recent analysis by the National Association of Realtors (NAR) and Realtor.com. Middle-income buyers are currently encountering the tightest inventory crunch of any income bracket due to fast-rising prices and lack of affordable new construction.
Middle-income buyers can afford to purchase less than one-quarter (23%) of all listings in the current housing market, but just five years ago, the same group could afford to buy half of all available homes, NAR reports.
"Middle-income buyers face the largest shortage of homes among all income groups, making it even harder for them to build wealth through homeownership," said Nadia Evangelou, NAR senior economist and director of real estate research. "A two-fold approach is needed to help with both low affordability and limited housing supply. It's not just about increasing supply. We must boost the number of homes at the price range that most people can afford to buy."
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