A new report by realtor.com has found that homeowners and renters are finding it increasingly difficult to find a suitable home as the current housing shortages are pushing up prices.
The pandemic has promoted many people to move homes. In particular, many people in smaller houses and apartments have looked for a larger property amid the current social restrictions. Homes with outdoor space or room for a home office are in high demand.
Some landlords have, after being faced with flatlined rents, offered generous incentives to renters in order to keep their properties occupied in the last year.
However, the report shows that, despite this, there are very few bargains available in the rental market. In fact, rents across the US increased in March for the first time in eight months.
Overall, rents have increased by 1.1% this year, with the median rent in the markets included in the study being $1,463. In the months previous to this, growth in the rental market had significantly slowed, from 2.2% in July 2020 to 0.6% in February 2021.
What about homebuyers?
Renters have seen higher demand for property, which has meant higher rents. But what about those looking to purchase a home?
In a report by real estate broker Redfin, house prices are still rising, too. In the last year, the median sale price of a home in America increased by 18% to $344,625. This is an all-time high, and this is a trend that’s been consistent throughout the pandemic.
With more individuals and families searching for more space, there are more potential buyers. There are also fewer homes available, which has put sellers in a strong position.
Additionally, the report shows that the average property was on the market for just 21 days before going under contract. And a massive 45% of homes sold for more than the list price.
The current inventory of homes for sale was 1.1% lower last month. As homebuilding has stopped in many areas, this is pushing up prices, which puts many frustrated buyers in a difficult position in the months ahead.
