It is a nationally known fact that there is a shortage in available inventory within the housing market. In particular, affordable housing inventory has decreased by 18% year-over-year. This shortage is quickly pushing up the home value appreciation.
In fact, owners of starter homes are finding that they are gaining equity more rapidly than owners of luxury homes. Over the past year, starter homes have gained 8.5% in value while luxury homes only gained 3.6% in value. In the past five years alone, owners of starter homes have experience a 44.4% growth in equity, which is 17.8% higher than owners of luxury homes.
While this is great news for current owners of affordable housing, this steady increase in home price appreciation is making it harder and harder for first-time buyers to enter the market, especially since inventory is getting more and more depleted.
information obtained from: