In January, first-time buyers only made up 28% of home buyers, CNBC reports. Loan data also revealed first-time homeowners have not been jumping into the market yet. [Homebuilder ETFs Could Have First-Time Buyer Problems]
“The rental market used to be and should remain a stepping-stone to homeownership,” Humphries added. “But given how widespread rental affordability problems have become, the rental market could be acting more like a barrier to buying. More supply will help ease the crunch, both from new construction and as current renters transition into homeownership, creating more vacancies in existing developments. But neither will happen overnight.”
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Max Chen contributed to this article.