A report published by the National Association of Realtors and Realtor.com revealed that middle-class U.S. homebuyers have been hit by a shortage of available housing.
While 51% of U.S. earners bring in a household income of $75,000 or less, the report found that only 23% of available home listings nationwide fall within this market segment’s price range.
San Jose, California, and New York were the hardest-hit regions, where middle-class buyers are able to afford only 5% and 13% of property listings respectively.
In contrast, high-income households are facing an abundance of housing options on the market. While only 7% of U.S. households generate an income of $250,000 or more, they are able to afford around 85% of all listed properties.
“The housing affordability issues would not be so severe if homes were dispersed in a more adequate match for the distribution of households by income level,” Nadia Evangelou, senior economist and director of real estate research at the National Association of Realtors observed.
According to Evangelou, a more targeted approach is required when new homes are built going forward.