Starter Home Drought Leaves First Time Buyers Thirsty

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Posted To: MND NewsWire

Housing industry players have decried the absence of first-time homebuyers and the negative impact they have had on the housing recovery. Fannie Mae’s Economic and Strategic Research team, in the most recent edition of Housing Insights , says that this absence, which has long been a result of lack of demand due to financial constraints, is now shifting to a supply issue. As the labor market has improved and wages to recover and even though tight credit may still be an obstacle recent attention has shifted to the lack of available starter homes as an impediment to first-time buyer participation. Fannie Mae’s analysts see several issues involved in this shortage. The first frequently cited issue is the “subdued construction of modestly priced houses. Another factor, perhaps not as frequently…(read more)

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