Buying a home is getting more difficult — and it isn’t just because of price

Buying a home is getting more difficult — and it isn’t just because of price

Blame it on the mortgage rates. Blame it on the scarce supply.

There are more than enough reasons to blame for the dismal state of the U.S. housing market, which are now quantified and categorized in NBC News’ Home Buyer Index.

Here are some key takeaways from the first report:

Homebuying is hard around the country

The April Home Buyer Index report found nationwide difficulty to be at 87.3 out of a possible 100, a score that represents extremely tough conditions. And homebuyers across the country are feeling the squeeze: 26 states have at least one county in the list of the 100 most difficult counties. Colorado is home to the three most difficult counties in the country: Garfield, Routt and Mesa counties.

All three Colorado counties have high cost and competition scores, indicating that homes are both expensive and going quickly when they hit the market. In Routt County’s Steamboat Springs, buyers face a housing boom so intense that even high earners can’t afford homes.

But it’s not just overall cost that is driving difficulty. Forty-three of the 100 most difficult counties in which to buy a home have median list prices below the national average.

“I think it’s been a widespread issue that’s not just the high-cost areas,” said Daniel McCue, senior research associate at Harvard’s Joint Center for Housing Studies. “It’s very much across the nation.”

McCue pointed to Columbus, Ohio, as an example of a place where a historically stable market suddenly began to surge during the Covid pandemic, noting that Columbus had “somewhere around 40% growth in prices between 2021 and 2023 — something that hadn’t been seen in decades.”

The Home Buyer Index in Franklin County, Ohio, where Columbus is primarily located, shows difficulty has increased steadily since the beginning of 2020, rising from 39.5 in December 2020 to 74.0 in April.

Home supply falling short

Today’s homebuyer faces a smaller pool of options than in previous years. And there’s little relief in sight, as the pace homes are arriving on the market remains outstripped by demand.

The NBC News Home Buyer Scarcity Index — which accounts for existing inventory, new construction and other factors — reflects that, with a value of 87.8 — far higher than before the pandemic, when values rarely exceeded 60.

“The spoken rule is that six months of supply has traditionally indicated a balanced market,” McCue said. “At this point, we’re at historically low monthly supply.”

Supply has remained below that level since May 2020. An NBC News analysis of Redfin data shows that, nationally, the available housing stock can meet 2.6 months of demand, given the current rate at which homes are leaving the market. At the same time, the number of new listings’ hitting the market remains low — suggesting that those waiting for more options may need to wait a little longer.

Demand — and competition — is elevated

Among the three difficulty sub-indexes specific to housing, competition is the leading driver of difficulty in nearly half of the counties measured.

Nationally, the Home Buyer Competition Index — which captures how quickly homes move out of the market — shows that competition has soared in the last five years, rising from a low of 39 in April 2019 to 99 — almost the max — for all of 2021 and most of 2020. And although competition has moderated a bit in 2023 and 2024, it still remains far above pre-pandemic levels.

Central California’s Tulare County is one of the most competitive markets in our April report. Roughly 55% of homes in Tulare County left the market within two weeks in April. And 36% sold above list price — 6 percentage points above the national figure.

Out of sight 

Nationally, the average household’s purchasing power has eroded sharply. The price of a home the average homebuyer could afford has nearly halved since December 2020.

In 2019, a household earning the median income could afford to buy the median-priced home in 94% of U.S. counties. Today, a median-income household would be able to afford only a median-priced home in 63% of counties, as homes across Florida and much of the West have climbed out of reach.

Jasmine Cui

Jasmine Cui is a reporter for NBC News.

Joe Murphy and Nigel Chiwaya contributed.

OTHER NEWS

25 minutes ago

Supermarkets to face millions in fines under new code

25 minutes ago

Travelling workshops hope to improve spotting coercive control in rural and regional Australian communities

25 minutes ago

4 exciting performances coming to the Etihad Arena this year

25 minutes ago

How to spot YOUR home is at risk of subsidence and fix it without breaking the bank: Our property experts' guide to tackling the problem before it knocks a fifth of the value off your house

25 minutes ago

Video: Tones and I trapped in Parliament House following performance: 'My phone's going to die soon'

25 minutes ago

Video: All the best videos from Taylor Swift's London shows: From Travis Kelce's surprise appearance and Prince William's dad dancing to THAT 'f**k the patriarchy' chant

28 minutes ago

J.B. Pritzker-backed abortion-focused group launches first paid ad campaign on 2024 cycle

30 minutes ago

Top 10 countries that millionaires are migrating to in 2024

30 minutes ago

Critically endangered wildcat kittens born in wild in conservation boost

30 minutes ago

Met Office Monday Afternoon Weather Forecast 24/06/2024

30 minutes ago

BBC News presenter devastates fans as he quits after 30 years on air

30 minutes ago

Betting scandal inside the UK's ruling Conservative Party mars election race

30 minutes ago

Drunk woman allegedly tried to drown random 3-year-old Palestinian girl at apartment complex pool

30 minutes ago

Joe Hart opens up on his infamous rant at the 2014 World Cup when he told a ballboy to 'give me the f***ing ball' during defeat by Italy - as he claims he was just 'trying to do what was right at the time'

30 minutes ago

LISTEN: On today's EUROS DAILY, Scotland were passive and didn't deserve to reach the knockouts… should Steve Clarke go?

30 minutes ago

How to spot YOUR home is at risk of subsidence and fix it without breaking the bank: Our property experts' guide to tackling the problem before it knocks a fifth of the value off your house

30 minutes ago

Doctors' union launches legal action against regulator the General Medical Council over 'dangerous blurring of the lines' on role of 'cut price medic' physician associates

30 minutes ago

'It was the best night of my life, but I can't remember it': UK Taylor Swift fans hit by 'post-concert amnesia' - and scientists explain how the phenomenon could affect anyone

34 minutes ago

Ramaphosa urges unity over power struggles in GNU

34 minutes ago

Sir John Kirwan: ‘What more does Hoskins Sotutu need to do to get an All Blacks call?’

34 minutes ago

Hostile Spanish GP crowd targeting Esteban Ocon and Alpine led to cancellation threat

34 minutes ago

Urgent action needed to prevent overloading of the power network

35 minutes ago

Netanyahu receives warning from panel probing submarine purchase

35 minutes ago

Wimbledon: The 9 greatest men’s singles champions – ranked!

35 minutes ago

Telegraph changes headline of Beirut Airport report after backlash

35 minutes ago

Uri Geller: Aliens built the Jerusalem Temple, may help Israel during war

35 minutes ago

Where to watch Albania vs. Spain live stream, TV channel, lineups, prediction for Euro 2024 match

35 minutes ago

North Korea media goes public with details of new Russia treaty - AP Explains

35 minutes ago

Why Latrell is primed for Origin dominance

35 minutes ago

Bridge Collapses Into Iowa River After Heavy Flooding

35 minutes ago

Commonwealth Bank June report on state economies shows WA leads the pack

36 minutes ago

Copa América continues Monday at NRG Stadium with Colombia taking on Paraguay

39 minutes ago

This Apple Pencil can make drawing, writing, and sketching easier for $60

43 minutes ago

Anti-Israel couple in Range Rover arrested at gunpoint during LA protest with keffiyeh-clad toddler in backseat

43 minutes ago

AI Creates The Perfect '90s Lord Of The Rings Movie Trailer & Cast

43 minutes ago

Active shooting incidents in the US declined by 4% from 2022 to 2023: FBI

43 minutes ago

Why Lando Norris’ stone-faced response to Spanish GP missed opportunity speaks volumes

43 minutes ago

Aileen Cannon To Rule if Jack Smith Can Use 'Highly Incriminating Evidence'

43 minutes ago

Tennis-Sinner more confident ahead of Wimbledon after first grasscourt title

43 minutes ago

Top 15 schools to have produced the most Springboks – UPDATED