A new real estate study finds that new household demographics are increasingly at odds with current active households' preferences, and the pricing and products being offered in the market.
According to the research done by advisory RCLCO, "Disruptive Demographics: Housing Production & Demographic Reality Are Moving in Different Directions," the affordability crisis looms large over both demographic and production, as new-home affordability remains crunched, and the range of sizes in the current supply are driving up prices still for land, labor, and mortgages. The share of newly built homes sized larger than 3,000 square feet grew to 30 percent from 19 percent, compared with the years leading into the housing crisis.
RCLCO’s recent Housing and Community Preference Survey found that even though the conventional single-family detached home remains the most desirable for-sale residential product type, approximately a third of all consumers surveyed would consider a higher-density attached product, yet these product types only make up 14.8 percent on newly constructed homes. On average, these product types are offered at more attainable price points than single-family detached homes and often appeal to buyers wanting to own a home but unable to afford detached product.