The United States and Canada are among the most popular destinations for homebuyers looking for a national home, and they’ve both seen a surge in home sales over the past several years.
According to the National Association of Realtors, national home sales are up almost 6% in the past year, and are expected to surpass $2.6 trillion by 2021.
The number of homes for sale in the United States increased by more than 300% since 2016, and many homes are being built in states like California and Nevada, which are among America’s fastest-growing homebuilding states.
But a recent National Association for Home Builders report said that in the future, there will be fewer buyers in the U.S. who want to buy a home from a national retailer.
“There’s no way to make the home shopping experience any better for people who want a local, locally owned business,” said Michael Lipski, president of the NAAHB, adding that “local” means local.
“The people who are most willing to pay for that kind of investment are the folks who live in the cities.
They have to live there.”
The National Association’s report also noted that many people are buying in a state where the home buying environment is more favorable than in many other parts of the country.
In fact, states with the highest percentage of homeowners who say they have an active and healthy mortgage account are in the states where home prices are the highest.
“We see the highest levels of homeownership in California, New York, Illinois, and Texas, and we also see it in places like Florida, Texas, Georgia, and Maryland,” said Andrew Hirsch, the NABHC’s senior vice president of marketing and research.
“People who are really willing to spend $100,000 or more on a home are in those areas.”
Hirsch said the report also found that people who have a high level of debt are buying homes in states with lower mortgage rates, such as states with higher property taxes, and that people with a high debt load tend to purchase in states where the homeownership rate is lower.
“In a state with a lower mortgage rate, there’s not a lot of demand for those types of homes,” Hirsch added.
Hirsch also pointed out that the NAAA’s survey showed that homeowners who live near a large city are buying their homes more than in other areas.
“If you look at the states with most people moving to urban areas, that’s a strong indication of what you’re seeing in terms of people who live close to the city,” he said.
The NAAA report said the number of homeowners in the country who say that they want to live in a city is lower than the national average, and in some states, the number is lower even among those who say the same.
While homeownership is rising faster in the Midwest than in the South, the study found that homeownership rates are increasing faster in states that are more expensive than other parts, such in California and Arizona.
In Texas, the average home price in 2017 was $1.9 million, while the national median price was $4.931 million.
In the Midwest, the median price for a home is $1 million, according to the NTAH, but in the West the median home price is $3.7 million, and the average for the South is $2 million.
“When you look in the Northeast and West, the highest rates of homeowners were in places where there was a lot more money to be made on the market,” said Lipske.
The report also said that many consumers in these states are looking to buy homes in places that are relatively affordable.
“Many people who buy a $500,000 home in Dallas, for example, might not want to move to New York City to buy that same house,” Hisch said.
“But people who might move there to buy their home, they’re willing to put a lot less down on their mortgage and pay a lot higher taxes than other people who would prefer to buy in a lower-cost area.”
Lipsik said the National Retailers Association is working to make homebuying more affordable.
The association is working with a number of retailers and mortgage servicers, and is also working with states on efforts to improve the quality of their mortgage servicing.
“Our goal is to help people find the homes that are right for them, and make sure that we make it easier for them to buy,” said Hirsch.
“It’s not about being a local or regional brand.
It’s about helping people who otherwise would not be able to buy, and help them to have that level of stability and affordability.”
For more on this story, read the National Review article.