Affordability means within reach of income or capital. Food, clothes, and home are the three basic needs for any living human being. Rising prices of homes, coupled with increasing interest rates are adversely affecting affordability for home buyers.
Below are some of the other reasons that affordability for home buyers is decreasing:
The growth in population is another cause of affordability declination of houses. When the number of individuals increases, the competition increases. This competition raises the prices of homes and apartments.
- Supply of houses:
Land is limited, and not all the land can be used for building blocks. So, the supply of new homes is not meeting the required demand. This also creates a hike in prices.
- Cost of material:
The materials that are necessary to build homes are not getting any cheaper.
All that said, it’s certainly viable to work together and identify what you’re looking for and make home ownership viable. – Make sure you work with your lender to establish an appropriate, comfortable price range for your home search and maintain open communication with your lender- changes in interest rates may affect the purchase price or loan amount at which you’ve qualified.