National Builder Trade In Program - June 2023 Builder Report

R E P O R T

BUILDER JUNE 2023

LACK OF AFFORDABLE HOMES FOR MIDDLE-INCOME BUYERS

The U.S. housing market is short more than 300,000 affordable homes for middle-income buyers, according to a new analysis from the National Association of Realtors® and Realtor.com®. The country's persistent housing inventory crunch impacts middleincome buyers more than any other income bracket

"Middle-income buyers face the largest shortage of homes among all income groups, making it even harder for them to build wealth through homeownership," said Nadia Evangelou, NAR senior economist and director of real estate research. "A two-fold approach is needed to help with both low affordability and limited housing supply. It's not just about increasing supply. We must boost the number of homes at the price range that most people can afford to buy."

At the end of April 2023, approximately 1.1 million homes were available for sale, an increase of 5 percentage points from one year ago. However, the market is missing almost 320,000 home listings valued up to $256,000, the affordable price range for middle-income buyers or households earning up to $75,000. Middle-income buyers can afford to buy less than a quarter (23%) of listings in the current market. Five years ago, this income group could afford to buy half of all available homes.

"Ongoing high housing costs and the scarcity of available homes continues to present budget challenges for many prospective buyers, and it's likely keeping some buyers in the rental market or on the sidelines and delaying their purchase until conditions improve," said Realtor.com® Chief Economist Danielle Hale.

"Those who are able to overcome affordability constraints may be increasingly drawn to newly constructed homes or to the suburbs and beyond, both of which may offer buyers more realistic opportunities for homeownership in the near term."

Among the 100 largest metro areas, El Paso, Texas; Boise, Idaho; and Spokane, Wash have the fewest affordable homes available for middle-income buyers. Three Ohio cities – Youngstown, Akron and Toledo – have the most affordable homes available for that income group.

"Even with the current level of listings, the housing affordability and shortage issues wouldn't be so severe if there were enough homes for all price ranges," Evangelou added "Our country needs to add at least two affordable homes for middle-income buyers for every home listed for upper-income buyers."

The U.S. housing market is missing about 320,000 home listings valued up to $256,000, the affordable price range for middleincome buyers (households earning up to $75,000).

TOP 10 REASONS TO USE THE BUILDER TRADE IN PROGRAM

Homebuyers

Design Board and our Designers will create several initial designs based on their color preferences, and find the design palette they love! They'll see how new paint colors look BEFORE IT’S PAINTED!

PROMOCODE:JUNE2023

forHomeKeeprPremium

Mover Engage: Moving is expensive and we can help! Your clients will receive exclusive deals and discounts including 15% at Home Depot & 20% at Budget Moving.

Homeownership Portal: Your clients can manage every aspect of owning a home with their personal Home Ownership Portal. It is branded to you and pre-populated with key home data points such as age and type of construction, home value estimates, and real-time market updates

Utility Connect: Connecting utilities can be time consuming, but doesn't have to be with our utility concierge service. Utility Connect is a one-stop shop with trained experts to research the best services available and make the connection! Homebuyers love it!

Mover Intelligence Score: Generate real leadskeep you connected with past clients and create new business. HomeKeepr alerts you when one of your contacts are identified as a “likely mover”. The system monitors public data points for life events which are known triggers for a move, and creates a Mover Intelligence Score (MIS). Those who have a high probability of moving within 6 months are the ones you want to connect with. The accuracy is amazing!

COLORTOMAKEITSRETURN INSIDEHOMESIN2024

Each year, color and design experts immerse themselves in emerging movements across fashion, technology, art, and popular culture to pinpoint key color stories and design themes reflecting the coming year. For 2024, paint manufacturer Dunn-Edwards Corp. predicts “the promise of a new era reflected in interior design.”

“People have a newfound appreciation for life and the promises it holds,” says Sara McLean, color expert and stylist at DunnEdwards. “As a result, we predict 2024 will be the year to break free from the traditional do's and don’ts of interior design.”

In its 2024 Color + Design Trends report, the experts identified a collection of 48 hues across four inspired color palettes: New Dawn, Time of Comfort, View to Wonder, and Cinematic Heritage. The palettes project confidence and optimism for the future with misty, ethereal midtones, quirky brights, and strong earthdrawn colors. Read more about each below:

New Dawn: This nature-inspired palette is made up of ethereal pastels, misted mid-tones with a touch of grittiness, grounded earth shades, and colors that feel like glimmering sunlight.

Time of Comfort: Warmth is central to this palette with tried-and-true colors spanning bread-like neutrals to garden greens, floral brights, and blues reminiscent of a day at the beach.

View to Wonder: Autumn and spring collide in this escapist palette filled with warm, saturated hues and the hypnotic power of brights and sugary pastels

Cinematic Heritage: In a fast-paced world, this palette encourages the slow romanticism of everyday rituals by combining mauves, browns, and greens with bright reds, blues, and fuchsias for a playful balance of vintage and modern.

"Thesecolorpalettesinvite coziness,romance,escapism,and youthfulness,inspiringusto breakthemoldandtransform ourspacesinameaningfulway,”

addsMcLean