The typical first-time homebuyer will probably be looking at a house worth more than $3.5 million.
But the real estate industry is in for a big jump in value over the next several years.
We’re told there’s a new wave of demand for homes in the US, and the market is now growing at a rate of 8% annually.
But it’s not all about the homebuyers.
In fact, the average home value in the United States has dropped from $2.3 million to $1.4 million over the past few years.
And while that may sound like a huge drop, it’s actually not.
According to the latest numbers from the U.S. Census Bureau, the number of households that reported owning a home in 2016 increased by 4.3%.
And that’s despite the fact that nearly 2 million households sold their homes in 2016.
The trend of homeownership among Americans is on the decline.
While Americans have traditionally enjoyed the benefits of home ownership, the trend of Americans buying homes has decreased since the 2008-2009 financial crisis.
“A recent report by the National Association of Realtors (NAR) found that median sales prices in the U-S.
for homes sold between March 2016 and March 2017 were $1,039,200 lower than they were for the same time period a year earlier,” reported The Atlantic’s Jessica Vaughan.
Vaughan points out that the reason the trend hasn’t gone away is because of the fact the cost of mortgages has been rising.
So even as prices have fallen, the demand for houses has risen, and many homeowners are willing to pay a premium for a home.
For example, Vaughn writes that homes worth $3,000 are available for sale in New York City for just $3 per square foot.
That’s a 20% premium, which would be equivalent to a $4 million home.
And if you can’t get into a house with a price tag of $3M, it could be worth buying an average two-bedroom house for around $1 million.
Meanwhile, the price of housing in California has skyrocketed since the Great Recession.
And as Vaughn writes, “The median home price in California rose by more than 6% in the past year to $3 billion, according to real estate research firm Zillow.”
The number of people who are homeowners has also dropped, as people are opting to rent rather than buy.
In 2016, 1.5% of Americans lived in a home owned by someone other than a spouse or partner, according the National Association of Residence Directors.
Even more shocking, according Zillower, the median rent for a two-person household is $1k, which is about $1K less than it was in 2000.
If you think that’s shocking, think again.
Today, the typical household in the country owns only one other person.
According to the Fannie Mae National Homebuyer Survey, only 11% of all households own two people, compared to 51% in 2005.
And more than a third of people are renting their homes.
Now, a lot of this might be because Americans are living longer.
One of the reasons the demand has been so high is because people are spending more of their income on housing.
People who earn more are saving more, and more people are choosing to rent.
However, it does seem that there’s still a big demand for more affordable homes.
As the economy continues to recover and the housing market rebounds, many Americans may start looking at their current housing investment options differently.
Are you looking for a cheap, low-rent home or a high-end, luxury home?
We’ve got the answer to that.