The number of homes for sale for each renter household in the U.S. remains near record lows, highlighting the supply crunch that first-time buyers face in the current housing market.
“Therefore, not only do people seeking to buy their first home have to navigate an expensive market, but they also have to compete with more first-time buyers as supply continues to trail demand,” Freddie Mac economists wrote in the report.Affordability also remains a key struggle for first-time buyers.
Among renters who say they would prefer to own, cost is the biggest barrier. Of this group, 65% say the cost of a down payment is holding them back from purchasing. But the survey found that the potential long-term financial gains from homeownership were less important than the personal freedom and stability that comes with home ownership.
Still, would-be homebuyers should remember that the benefits of homeownership come with a cost. Renting remains cheaper than buying a starter home in many markets.