Housing Demand Changes as Costs Climb

Household creation expected to slow.

By Erik Sherman | August 05, 2022 at 08:41 AM

It’s hard to miss how expensive and, for millions, unaffordable housing has become. New research from Marcus & Millichap suggests that the market is currently experiencing a classic standoff between price elasticity and demand.

“Both the number of homes sold and apartment units absorbed fell in the second quarter, a signal that household formation may be moderating,” the report noted. “This contraction occurred during the same three-month span in which more than 1.1 million jobs were added, a process that typically supplies residents with incomes and the stability to form households.” Marcus & Millichap also said that as of June in the US, the estimated difference between a monthly payment on a median priced home and a rent obligation surpassed $1,000.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

Unlimited access to GlobeSt and other free ALM publications
Access to 15 years of GlobeSt archives
Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
1 free article* every 30 days across the ALM subscription network
Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account? Sign In Now

Dig Deeper

Recommended Stories

Multifamily Concessions Are Up While Renewals Fall

Erik Sherman | March 31, 2023

New lease trade-outs plummet nationally.

Penn Station Rebuild to Wrap Glass Entrance Around Madison Square Garden

Jack Rogers | March 31, 2023

Italian firm's design moves forward after Vornado gets cold feet on mega-project.

Renting an Apartment is Now $1,175 Cheaper Per Month Than Owning a Home

Courtney Fingar | March 31, 2023

The monthly cost of homeownership has increased 71% over the past three years.

Resource Center

The travel industry experienced a critical disruption with the pandemic. This white paper explores the lingering effects of the pandemic, takes a closer look at evolving traveler behavior, and analyzes what the resulting impacts are on foot traffic and surrounding businesses.

White Paper

Sponsored by Placer Labs Inc.

Navigating a New Normal in Business Travel

The travel industry experienced a critical disruption with the pandemic. This white paper explores the lingering effects of the pandemic, takes a closer look at evolving traveler behavior, and analyzes what the resulting impacts are on foot traffic and surrounding businesses.

Browse More Resources ›

Retailers faced a wide range of challenges in 2022. Yet, these 10 retail brands prove there are many untapped opportunities in the year ahead. Download this whitepaper to learn which top retail CRE brands are poised for big things in 2023.

White Paper

Sponsored by Placer Labs Inc.

10 Top Retail Brands to Watch in 2023

Retailers faced a wide range of challenges in 2022. Yet, these 10 retail brands prove there are many untapped opportunities in the year ahead. Download this whitepaper to learn which top retail CRE brands are poised for big things in 2023.

Browse More Resources ›

The current commercial real estate (CRE) landscape faces disruption from economic and geopolitical fallout. What does this mean for CRE professionals? Download this eBook and learn how CRE professionals can proactively manage economic challenges by leveraging the power of data.

eBook

Sponsored by PwC

Navigating interest rate disruption: How real-time data can facilitate better CRE decisions amid volatility

The current commercial real estate (CRE) landscape faces disruption from economic and geopolitical fallout. What does this mean for CRE professionals? Download this eBook and learn how CRE professionals can proactively manage economic challenges by leveraging the power of data.

Browse More Resources ›

GlobeSt. Multifamily Fall 2023Event

Join the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information

GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
Exclusive discounts on ALM and GlobeSt events.
Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now

Copyright © 2023 ALM Global, LLC. All Rights Reserved.