Sometimes we need need quantitative affirmation to confirm what we already know to be true. New economic numbers give us just that when it comes to the need for more affordable housing,. According to Adam Artunian with John Burns Real Estate Consulting, the supply of “low-tier” housing (defined by Zillow as houses that are listed in the bottom one-third of home values in the market) has been declining steadily since mid-2014 and are down 20% year over year in the 31 largest housing markets.
Conventional builders appear to be focusing more attention to the higher end of the market, which leaves entry-level buyers in the lurch. Artunian has a couple of very interesting demographic explanations as to why this is the case and his insights are worth the read. All of this is more evidence that SALT’s work of providing affordable housing is more important than ever.