Even before the pandemic upended the housing market, the United States faced a widening gap in housing supply and demand due to decades of underbuilding and underinvestment in housing. In communities across the country, the supply-demand gap—further escalated by the pandemic—has driven a drastic rise in home prices that puts the dream of homeownership out of reach for many. The good news is, there are solutions to close the gap and make homes more affordable; keep reading to learn more.
An issue close to home
Homeownership is a critical wealth-building tool for Americans. However, the cost to buy a home is so high in some areas that even young professionals with two incomes and no children struggle to afford housing. The Boston area is a prime example of skyrocketing single-family home prices that communities across the country are grappling with.
The median single-family home price reached an astounding $750,000this year in Boston[1]. In August, 62 percent of homes in Greater Boston sold over the asking price[2]. And while the market eased after Labor Day, a significant cohort of Greater Boston residents are hitting their early 30s and are becoming more interested in purchasing a home[3]. Demand is trending upward, and without major investment to increase housing inventory, buyers will continue to face cutthroat competition or be locked out of the housing market altogether.
Calling for Solutions
Buying a home should be accessible and enjoyable. However, in communities like Boston, Phoenix, Dallas, and others with severe housing shortages, there are lines down the block at open houses and fierce bidding wars[4]. The solution? A major investment to increase housing inventory.
The American Property Owners Alliance (The Alliance) is a coalition of current and prospective property owners who advocate to make homeownership more accessible. Right now, we are amplifying the voices of homeowners and homebuyers like you to urge Washington to invest more aggressively in supply-side interventions that will drastically increase the number of homes on the market. These include policies that incentivize the construction and rehabilitation of homes for low- and moderate-income families; offer incentives to convert unused or underutilized commercial properties into residential units; and call for funding for state and local governments to enact pro-housing policies.
Click here to add your voice and urge Washington to support critical solutions to increase housing inventory in communities across the country.
[1] https://www.gbreb.com/GBREBDocs/GBAR/News/Housing-Market-Data/GBAR-Monthly-Market-Insights-Report-Oct21.pdf
[2] https://www.bostonglobe.com/2021/10/04/business/some-good-news-buyers-bostons-slightly-cooling-housing-market/
[3] https://www.bostonmagazine.com/property/2021/09/23/buyers-market-boston/
[4] https://www.bostonglobe.com/2021/04/07/business/theres-been-no-surge-sales-spring-housing-market/