{"id":13584,"date":"2015-07-23T05:00:51","date_gmt":"2015-07-23T12:00:51","guid":{"rendered":"http:\/\/www.yardi.com\/blog\/?p=13584"},"modified":"2020-12-24T03:24:57","modified_gmt":"2020-12-24T11:24:57","slug":"forgotten-buyers","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/","title":{"rendered":"Homebuying Hopes"},"content":{"rendered":"<p>A seemingly healthy economy, rising rent rates and a limited<img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-13585\" src=\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2015\/07\/forgotton-300x234.jpg\" alt=\"forgotton\" width=\"300\" height=\"234\" \/> inventory of existing homes are pushing some buyers into the new homes market. Interestingly, they have few options once they arrive; new home construction is largely targeted towards mid- to high-price tier properties. First-time buyers are in limbo, adding uncertainty to an already imbalanced market.<\/p>\n<p><a title=\"Census Bureau data\" href=\"https:\/\/www.census.gov\/construction\/nrs\/pdf\/uspricemon.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Census Bureau<\/a> data reports year-over-year prices of <a title=\"New home sales\" href=\"http:\/\/www.tradingeconomics.com\/united-states\/new-home-sales\" target=\"_blank\" rel=\"noopener noreferrer\">new home sales<\/a> have risen above the May 2014 estimate. <a title=\"Home price trends\" href=\"https:\/\/www.census.gov\/construction\/nrs\/pdf\/uspricemon.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Price trends<\/a> indicate above average emphasis on move-ups and luxury home sales. In May 2014, the average price of homes sold was $323,500. The May 2015, the average sales price came in at $337,000.<\/p>\n<p>These aren\u2019t first-time homebuyer prices though the group makes up a noteworthy portion of home buyers returning to the market. In 2014, first-timers made up 27 percent of buyers. This summer, they\u2019re exceeding 32 percent, reports National Association of Realtors. A Campbell\/Inside Mortgage Finance HousingPulse suggests an even higher figure with first-timers composing nearly 40% of purchases in May. Most builders overlook this growing group.<\/p>\n<p>Inaccurate data\u2014or incomplete data, at best\u2014may be a factor in builders\u2019 strategies. On the surface, home demand is up as are job growth and wages. In theory, first-time home buyers are walking into a market that is accommodating their needs and improving their odds. Except it isn\u2019t.<\/p>\n<p>A <a title=\"Pew Research on wages and jobs\" href=\"http:\/\/www.pewresearch.org\/fact-tank\/2014\/10\/09\/for-most-workers-real-wages-have-barely-budged-for-decades\/\" target=\"_blank\" rel=\"noopener noreferrer\">Pew Research Center report<\/a> explains, \u201cFor most U.S. workers, real wages \u2014 that is, after inflation is taken into account \u2014 have been flat or even falling for decades, regardless of whether the economy has been adding or subtracting jobs.\u201d The report continues, \u201cBut after adjusting for inflation, today\u2019s average hourly wage has just about the same purchasing power as it did in 1979.\u201d The organization\u2019s August 2014 survey concludes that 56 percent of Americans say their family\u2019s income was falling behind the cost of living. Buyers\u2019 money isn\u2019t going as far as it should.<\/p>\n<p>Real incomes have the same purchasing power as they did in 1979. In May 1979, median home prices came in at only $62,800 with an average of $71,800. Real home prices have skyrocketed by 350 percent although real incomes have barely budged. First-time home ownership isn\u2019t as attainable or sustainable as some reports suggest. The surge of mid- and upper-tier housing leaves a void for entry-level buyers\u201432-40 percent of buyers in the market.<\/p>\n<p>This under served group means two things for the multifamily industry. The first is that it will enjoy more renters today and in the near future, since forecasts do not indicate a notable increase in wages. The second is that the pool of renters may ultimately decline. This demographic ultimately craves home ownership. If and when the opportunity presents itself, they\u2019re off to the lots! That\u2019s worth considering as multifamily continues its documented infatuation with mid- and top-tier rentals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A seemingly healthy economy, rising rent rates and a limited inventory of existing homes are pushing some buyers into the new homes market. Interestingly, they have few options once they arrive; new home construction is largely targeted towards mid- to high-price tier properties. First-time buyers are in limbo, adding uncertainty to an already imbalanced market. [&hellip;]<\/p>\n","protected":false},"author":440,"featured_media":13585,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_s2mail":"yes","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4],"tags":[1190,133,157,1188,543,578,1189],"class_list":["post-13584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-cost-of-living","tag-demographics","tag-economy","tag-home-ownership","tag-renting","tag-trends","tag-wages"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Yardi Blog<\/title>\n<meta name=\"description\" content=\"A seemingly healthy economy, rising rent rates and a limited inventory of existing homes are pushing some buyers into the new homes market. Interestingly,\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Homebuying Hopes\" \/>\n<meta property=\"og:description\" content=\"A seemingly healthy economy, rising rent rates and a limited inventory of existing homes are pushing some buyers into the new homes market. Interestingly,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/\" \/>\n<meta property=\"og:site_name\" content=\"Yardi Blog\" \/>\n<meta property=\"article:published_time\" content=\"2015-07-23T12:00:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-12-24T11:24:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2015\/07\/forgotton.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"781\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Erica Rasc\u00f3n\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Erica Rasc\u00f3n\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/\",\"url\":\"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/\",\"name\":\"Homebuying Hopes - Yardi Corporate Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2015\/07\/forgotton.jpg\",\"datePublished\":\"2015-07-23T12:00:51+00:00\",\"dateModified\":\"2020-12-24T11:24:57+00:00\",\"author\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/d63afaf076d5863391dd49858ccef2ac\"},\"description\":\"A seemingly healthy economy, rising rent rates and a limited inventory of existing homes are pushing some buyers into the new homes market. Interestingly,\",\"breadcrumb\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/#primaryimage\",\"url\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2015\/07\/forgotton.jpg\",\"contentUrl\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2015\/07\/forgotton.jpg\",\"width\":1000,\"height\":781},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.yardi.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Homebuying Hopes\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#website\",\"url\":\"https:\/\/www.yardi.com\/blog\/\",\"name\":\"Yardi Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.yardi.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/d63afaf076d5863391dd49858ccef2ac\",\"name\":\"Erica Rasc\u00f3n\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/09382010b8c97da56343095c2854ad7733a3c2e094f59f75eb5ef1aacf501bcf?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/09382010b8c97da56343095c2854ad7733a3c2e094f59f75eb5ef1aacf501bcf?s=96&d=mm&r=g\",\"caption\":\"Erica Rasc\u00f3n\"},\"description\":\"Erica Rasc\u00f3n specializes in online content creation and social media. She joined Yardi in 2011 after receiving her bachelor's degree from Kennesaw State University and serving in the Peace Corps. Erica's interests include sustainability, philanthropy, and the arts.\",\"url\":\"https:\/\/www.yardi.com\/blog\/author\/ericajarrell\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Yardi Blog","description":"A seemingly healthy economy, rising rent rates and a limited inventory of existing homes are pushing some buyers into the new homes market. Interestingly,","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Homebuying Hopes","og_description":"A seemingly healthy economy, rising rent rates and a limited inventory of existing homes are pushing some buyers into the new homes market. Interestingly,","og_url":"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/","og_site_name":"Yardi Blog","article_published_time":"2015-07-23T12:00:51+00:00","article_modified_time":"2020-12-24T11:24:57+00:00","og_image":[{"width":1000,"height":781,"url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2015\/07\/forgotton.jpg","type":"image\/jpeg"}],"author":"Erica Rasc\u00f3n","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Erica Rasc\u00f3n","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/","url":"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/","name":"Homebuying Hopes - Yardi Corporate Blog","isPartOf":{"@id":"https:\/\/www.yardi.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/#primaryimage"},"image":{"@id":"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/#primaryimage"},"thumbnailUrl":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2015\/07\/forgotton.jpg","datePublished":"2015-07-23T12:00:51+00:00","dateModified":"2020-12-24T11:24:57+00:00","author":{"@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/d63afaf076d5863391dd49858ccef2ac"},"description":"A seemingly healthy economy, rising rent rates and a limited inventory of existing homes are pushing some buyers into the new homes market. Interestingly,","breadcrumb":{"@id":"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.yardi.com\/blog\/forgotten-buyers\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/#primaryimage","url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2015\/07\/forgotton.jpg","contentUrl":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2015\/07\/forgotton.jpg","width":1000,"height":781},{"@type":"BreadcrumbList","@id":"https:\/\/www.yardi.com\/blog\/forgotten-buyers\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.yardi.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Homebuying Hopes"}]},{"@type":"WebSite","@id":"https:\/\/www.yardi.com\/blog\/#website","url":"https:\/\/www.yardi.com\/blog\/","name":"Yardi Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.yardi.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/d63afaf076d5863391dd49858ccef2ac","name":"Erica Rasc\u00f3n","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/09382010b8c97da56343095c2854ad7733a3c2e094f59f75eb5ef1aacf501bcf?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/09382010b8c97da56343095c2854ad7733a3c2e094f59f75eb5ef1aacf501bcf?s=96&d=mm&r=g","caption":"Erica Rasc\u00f3n"},"description":"Erica Rasc\u00f3n specializes in online content creation and social media. She joined Yardi in 2011 after receiving her bachelor's degree from Kennesaw State University and serving in the Peace Corps. Erica's interests include sustainability, philanthropy, and the arts.","url":"https:\/\/www.yardi.com\/blog\/author\/ericajarrell\/"}]}},"jetpack_featured_media_url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2015\/07\/forgotton.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/13584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/users\/440"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/comments?post=13584"}],"version-history":[{"count":3,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/13584\/revisions"}],"predecessor-version":[{"id":25022,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/13584\/revisions\/25022"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/media\/13585"}],"wp:attachment":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/media?parent=13584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/categories?post=13584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/tags?post=13584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}