NASHVILLE, Tenn. (WZTV) — A national real estate brokerage and research firm reports those looking to find a new place can expect to pay more in rent or for a home until next year.
Marcus & Millichap's research brief on housing finds buyers across the nation are already facing limited options given a low supply of homes for sale which combined with lumber costs, has pushed prices higher.
Currently, the average price for an existing home is $344,000, an increase of 24% compared to May 2020. The average price for a new home has also jumped by 18%, setting a high of $383,100 in May.
Rising costs are also affecting renters who hoped to find a home, causing fewer to qualify. The brief states:
More households will stay in the renter pool longer, which should generate interest in the 335,000 apartments due in the nation’s major markets this year. The growing demand for apartments will push rents higher. The average effective rent in the U.S. is expected to jump 2.8 percent in 2021 to $1,451 per month.
In addition to low supply, adding to home costs is an already low pace of home construction and fewer baby boomers looking to sell since they are living longer. Researchers believe this "disconnect" is expected to last through 2022 when many of the issues will be resolved.