Many factors make it difficult to buy a home these days, but the “biggest difference” is today’s market Real estate bro Drew Scott says on CNBC the problem is housing shortage your money event Thursday.
“I don’t think people realize that our housing shortage affects everything,” his brother, Jonathan Scott, added. The two host a home renovation and design television series. “From Housing Unavailability to Housing Costs.”
The median U.S. home sales price in the second quarter of 2024 was $412,300. according to The U.S. Census is conducted through the Federal Reserve. That was down from $426,800 in the first quarter and down from a peak of $442,600 in the fourth quarter of 2022, the Fed reported.
“In another 20 years, virtually no young people will be able to afford to buy a home,” Jonathan told CNBC.
Why there is a housing shortage
By mid-2023, the housing shortage will reach 4 million units. according to National Association of Realtors. In recent years, new home construction has been slow and Buyers are competing Homes are available, driving up prices.
Despite recent signs of improvement in housing supply, this is not enough to address fundamental constraints in the U.S. housing market.
Single-family housing construction starts In the United States, new housing starts increased to 1,027,000 units in September. according to U.S. Census data. An increase of 2.7% from August.
Meanwhile, more home sellers are entering the market in the fall. many homeowner is in “Lock” or “Golden Handcuffs” With mortgage rates at record lows due to the pandemic, they can’t list their homes for sale.
“Just wait a few years and it will be fine”
Property brothers Drew Scott (left) and Jonathan Scott.
Jason Davis | Getty Images Entertainment | Getty Images
Real estate bros say that despite the high cost of housing, buying a home is still a good investment.
Net home ownership among U.S. mortgage-backed homeowners exceeded $17.6 trillion in the second quarter of 2024, according to to CoreLogic. Home equity increased by $1.3 trillion in the second quarter of this year, an 8.0% annual increase.
“You have to think long term,” Jonathan said. “It doesn’t matter if you wait a few years.”
Given the constraints of the property market, Property Brothers says you can benefit from creativity, e.g. Buy A home with family and even friends.
