Homeownership builds financial security and can drastically help people improve their net worth. The net worth of a typical homeowner is nearly 40 times the net worth of a non-owner. Home equity and retirement accounts represent over 60% of households’ net worth.
In the last decade, middle-income homeowners have accumulated $122,000 in wealth due to price appreciation alone.
However, a historic 50-year record shortage of affordable homes available for purchase has severely limited access to the residential real estate market.
A landmark report commissioned by NAR last year found the U.S. has developed an “underbuilding gap” of 5.5 million housing units over the last 20 years. This translates into a $4.4 trillion underinvestment in housing.
The housing shortage is constraining homeownership opportunities for too many Americans.
There are currently 280,000 homes listed for sale that middle-income families can afford to buy, a marked decline from 450,000 homes in 2019.
For middle-income households, there is only one affordable listing for every 125 households, a stark decrease from one listing for every 46 households in 2019.
Over the last two years, the percentage of single-family homes sold below $250,000 has plummeted from 47% of sales to 28%.
Check out these resources provided by NAR: https://www.nar.realtor/june-is-national-homeownership-month/homeownership-month-resources