Next year in the United States will be an acute shortage of affordable housing. This is the view of most analysts of the real estate market surveyed by Reuters.
The housing market in the United States was able to recover from a serious financial crisis that occurred 10 years ago, and the growth of economic activity has led to increased demand for housing. However, the proposal still are not able to keep up with growing demand.
According to analysts, the average annual income of Americans rose by less than 3%, while housing prices over the past few years has increased by more than 5%. According to analysts, in 2018 in 20 major cities housing price will rise to 5.7 percent, while the increase in average income is expected at 2.8%.
In 2019, the average housing prices are forecast to increase by 4.3% in 2020, the year by 3.6%.
«I think a few years housing prices will still exceed the household income,» says Sal, Guatieri, senior economist at BMO Financial Group.
As for affordable housing, and here the prognosis is not good. Experts suggest that over the next year the country will experience an acute shortage of affordable housing.
Valuing real estate market is likely to force many Americans to rent housing rather than buy.
Another potential obstacle for home buyers — increase in interest rates on mortgage loans. According to analysts, the average annual interest rate on mortgage loans by the end of 2018 will increase to 4.6%, and by the end of 2019, up to 5%.
However, in 3 regions of the United States the price of real estate has significantly subsided.
