It's hard to miss how expensive and, for millions, unaffordable housing has become. New research from Marcus & Millichap suggests that the market is currently experiencing a classic standoff between price elasticity and demand.
"Both the number of homes sold and apartment units absorbed fell in the second quarter, a signal that household formation may be moderating," the report noted. "This contraction occurred during the same three-month span in which more than 1.1 million jobs were added, a process that typically supplies residents with incomes and the stability to form households." Marcus & Millichap also said that as of June in the US, the estimated difference between a monthly payment on a median priced home and a rent obligation surpassed $1,000.
"More renters are likely opting for roommates or moving back in with family," the firm noted.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
