What are the most significant homeownership barriers right now? Prepared by Rosen Consulting Group, ?Hurdles to Homeownership: Understanding the Barriers? was released by NAR and the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley. This robust report explores a worrying trend and possible solutions.
Here is a summary of RCG?s findings:

1. Unaffordability of Single-Family Housing

There are many reasons why single-family homes are becoming more and more unaffordable. Low inventory and high housing prices are two examples. According to the NAR study, if these factors worsen or even just stay the same, affordability will decrease by an average of nine percent between 2016 to 2019 in the 75 major housing markets included in the report.

2. Stagnant Single-Family Home Construction

The supply shortage poses a significant homeownership barrier. Without new homes, the markets will continue to become increasingly competitive and unaffordable. According to Rosen Consulting Group, stagnant homebuilding has led to a deficit of 3.7 million new homes since the end of the Great Recession.

3. The Burden of Student Debt

Millennials have a heavy burden of student debt. Without significant policy changes and debt relief, this generation will continue to struggle to save up for a down payment, qualify for a mortgage, and be able to afford mortgage payments.

4. Inaccessibility of Mortgages

Surprisingly, lending standards have not normalized since the Great Recession, when it was exceedingly easy to get a loan. Now, borrowers with good-to-excellent credit aren?t getting approved at the same rate as they were in 2003. This poses a major homeownership barrier

5. Post-Foreclosure Behavior Changes

RCG also included in their analysis of homeownership barriers a psychological examination of the current homebuyer. Both Millennials and their parents have changed their financial decision-making when it comes to housing tenure, still reeling from an era of widespread foreclosure.

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