June is National Homeownership Month. This month-long observance was created to highlight the value of homeownership to people and communities. The celebration began as National Homeownership Week in 1995 and moved to a month-long celebration in 2002. Now, it’s observed as a reminder of how homeownership helps people build financial security, put down roots in their communities, and provide people with safe housing.
Unfortunately, if you follow real estate news, you know that homeownership is becoming unattainable for many people. In a recent survey from Fannie Mae, 82% of respondents believe that now is a terrible time to buy a home. Rising housing prices and mortgage interest rates are pricing many people out of the housing market, with a 58.7% increase in home prices since 2014. For younger generations like Gen Z, 80% admit that the higher prices of traditional single-family homes are pricing them out of the market.
Right now, the housing market is suffering from low inventories, which are 51% below pre-pandemic prices. This puts extra pressure on the real estate market and further drives up housing prices, especially for single-family homes. There just isn’t enough inventory to meet demand, but multi-family housing could be the answer.
From 2020, there has been a 14.6% increase in multi-family unit inventory. This increase led to over 1 million new units delivered between 2020-2023 according to the Q4, 2023 U.S. Multi-family Market Report from Avison Young. That’s a lot of new units, and it shows that multi-family construction can quickly help increase housing inventory in the market.
A multi-family unit may not be the same as a single-family home, but it can be a significant first step into the real estate world. A multi-family unit may be more affordable and allow new homeowners to begin building housing equity and financial security. As a plumbing and HVAC firm specializing in multi-family developments, we’ve seen firsthand how these projects can transform an area. They can open up homeownership opportunities for people who may have been struggling in a challenging real estate market.
We believe that homeownership is vital to the strength of communities and families. Right now, while the market is struggling with high prices and low inventory, multi-family units could be a great way for first-time homebuyers to begin their real estate journey. We’re proud to contribute our plumbing and HVAC skills to multi-family developments in the Intermountain West area!
