Home shoppers are growing increasingly tired of today’s highly competitive housing market.
A 53% share of consumers felt stuck with their current property since buying something else would be too expensive, according to a survey conducted by Mphasis Digital Risk. The surging rate of price increases coupled with the dearth of inventory left 52% of respondents anxious or sad while about 26% worried they’d have to settle for a lesser home.
"While there has been considerable focus on the booming housing market, the shift toward suburban and rural communities, and the impact of rising raw material costs on the supply of new construction, there has been far less notice paid to the human cost of home price inflation," Mphasis Digital Risk Co-Founder and Managing Director Jeff Taylor said in a press release.
The lack of affordability caused consumers to look at alternatives for their ideal house and financing. About half said they would consider a fixer-upper and just over 30% said they would take out a home equity line of credit to build an addition on their current property. Meanwhile, over 21% would consider going the 3D printed or modular route, and 16% would buy a tiny home.
Nearly a tenth of the 2,100 respondents surveyed used profits from selling cryptocurrency to fund either their home purchase or renovation in the past year.
The economic rebound and historically low interest rates should continue to drive the demand for home buying. However, the continued supply and demand imbalance keeping prices high and options limited could affect Americans for years to come, according to Taylor.
"That takes a toll on people, and 16 months after the start of the pandemic, people are emotionally drained," Taylor said.
