Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

MortgageReal Estate

Why won’t homebuilders better serve Millennials?

It's a chicken-or-the-egg situation

Millennials are slow to enter the housing market, and there’s an extreme shortage of inventory in the housing market, anyway.

So which problem gets solved first?

An article in TIME by Denver Nicks highlighted the issue and said:

This is the first time in the supply history of housing where, for whatever reason, a giant new generation is not being served,” G.U. Krueger, a Los Angeles housing economist, told The Los Angeles Times. ”To me, it’s incomprehensible.”

To some degree, it’s a chicken-or-the-egg situation. Are builders not catering to first-time homebuyers because the nation’s young adults aren’t likely to be purchasing? Or are young adults unlikely to be buying partly because there are relatively few homes that match their needs?

Either way, both areas are finally expected to take off over the next few years.

The most recent homebuilder confidence report recorded that homebuilders exhibited some optimism for the coming months.  

“Looking to 2016, at least a few public builders are opening or planning to open subdivisions in outlying communities and offering more affordable housing targeted to first-time buyers, including MDCMeritage Homes and, especially, D.R. Horton,” Fitch stated.

However, the scene is set for a strong market, National Association of Home Builders’ Chief Economist David Crowe explained.  

“The fundamentals are in place for continued growth of the housing market. Historically low mortgage rates, steady job gains, improved household formations and significant pent up demand all point to a gradual upward trend for housing in the year ahead,” Crowe said.

On the other side, a recent Lenders One mortgage barometer posted that Millennials are now reaching the peak age for homebuying. [Read extensive HousingWire library on millennials by clicking here.]

And out of 75.3 million Millennials, which range from 18 to 29 years old, 93% want to own a home in the near future.

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