From stagnant wages to competition from cash buyers, first-time homebuyers face many challenges in today’s housing market, but perhaps none is greater than the inventory shortage – a fact that is especially true here in Boston.
According to a new analysis from Zillow, the inventory of affordable homes in Boston has fallen 13.1 percent over the last year. Meanwhile, the supply of homes in the market’s middle tier is down 4.8 percent, and luxury homes in the top-tier are up 14.6 percent; those numbers are consistent with earlier analysis from Trulia.
The declining supply is causing prices to rise in the lower price points, and Svenja Gudell, Zillow’s chief economist, said that will only add to first-time buyer struggles.
“It’s going to be a tough homebuying market this spring, especially for first-time buyers or even people looking to move up into a slightly more expensive home,” he said.
Here is a more detailed breakdown on housing inventory across the country:
| Metro Area | Bottom-Tier Percent Inventory Change | Middle-Tier Percent Inventory Change | Top-Tier Percent Inventory Change |
|---|---|---|---|
| Atlanta | -11.5% | -11.9% | 1.3% |
| Boston | -13.1% | -4.8% | 14.6% |
| Chicago | -14.2% | -10.5% | 2% |
| Dallas | -27.5% | -32.5% | -10.1% |
| Los Angeles | -26.3% | -11.3% | 1.3% |
| Miami | -3.6% | 7.8% | 15.4% |
| New York | -9% | -3.6% | 4.7% |
| Philadelphia | -2% | -6.4% | 0.5% |
| San Francisco | -17.7% | -6.7% | 1.7% |
| U.S. Average | -10.4% | -10.4% | -1.9% |