19 Oct MARKET STAT UPDATE (October 2017)
Middle-Class Homebuyers Can’t Get Financing
Home builders aren’t the only business that has been turning it’s back on the American middle, for the simple reason that middle class incomes have been on the decline for years now. Furthermore, the mortgage finance industry is still leery of lending to all but the most creditworthy borrowers.
Rental Markets are Tighter Than They’ve Been in Generations
The lack of credit available for new homebuyers has forced more and more homeowners into the rental market, driving up rents and put further pressure on already strained middle-class budgets.
Rental vacancy rates is at the lowest levels in decades. This is important for the inflation outlook and for the outlook for construction.
Source: Census, Haver Analytics, DB Global Market Research