Nationally, Starter and Trade-Up Home Inventory Down More Than 40% Since 2012
H/T Barry Ritholtz
Heading into the spring house-hunting season, inventory remains tight and affordability is worsening, especially for starter-home buyers. Over the past four years:
- The number of starter homes on the market dropped by 43.6%, while the share of starter homes dropped from 30.2% to 27.7%. Starter homebuyers today will need to shell out 5.6% more of their income — based on the median income of start-up buyers — towards a home purchase than in 2012;
- The number of trade-up homes on the market decreased by 41%, while the share of trade-up homes dropped from 27.2% to 26.1%. Trade-up homebuyers today will need to pay 2.6% more of their income for a home than in 2012;
- The number of premium homes on the market decreased by 33.4%, while the share of premium homes increased from 42.7% to 46.2%. Premium homebuyers today will need to spend 1.4% more of their income for a home than in 2012.
Where Starter Homes Have Vanished
Source: Trulia
