Homebuilding Trends for 2023 – New Home Construction
After several years of a clear sellers’ market, the 2023 housing market could shift toward neutrality. Many experts anticipate buyer advantages due to a 22.8% increase in homes for sale. However, this surge results mainly from extended selling times due to affordability challenges. Homes will still be costly, with a projected 5.4% national median price increase, just half of 2022’s rate. On the whole, home sales are predicted to plummet by 14.1% compared to 2022, reflecting a market in transition.
For numerous potential first-time home buyers, 2023 delays their homeownership dreams due to elevated costs. This might lead to increased rental demand and a 6.3% rise in median rental prices. The introduction of new multifamily housing could help alleviate rental demand pressures. To save, renters might opt for suburban relocations.
Renters allocating over 35% of their income to rent could contemplate homeownership, paying less PITI than renting. Ownership offers the added advantage of owning an asset and potentially enhancing their financial portfolio.
Link Source: NAR | Barbara Ballinger
