The Number of Renters per Available Home has Ballooned

First-Time Homebuyers Face Challenges Amid Low Inventory

The journey to homeownership in today’s market has become notably difficult, particularly for first-time buyers. One of the most daunting obstacles is the persistently low supply of homes for sale, creating a fierce competitive landscape. According to Freddie Mac's recent market outlook, there are currently around 30 renter households for every available home for sale in the United States—a significant jump from fewer than 10 per home in 2006. This disparity underscores the intense supply crunch that first-time buyers encounter as they seek to transition from renting to owning.


The roots of this supply shortage trace back to the Great Recession, which sharply curtailed new home construction across the country. Although building activity has slowly picked up since then, it has not kept pace with the growing demand for homes. Freddie Mac estimates the resulting shortfall is at least 1.5 million homes. This shortage not only inflates prices, but also forces new buyers to compete against a growing pool of would-be homeowners, amplifying the challenge of finding an affordable property.


Affordability Woes in the Starter Home Market

Affordability remains a central hurdle. Freddie Mac’s data highlights that from January 2000 to July 2024, the prices of entry-level homes have surged 63% faster than those of higher-end homes. This rapid increase in starter home prices disproportionately impacts first-time buyers, who often lack the substantial savings or wealth that can ease the financial burden of homeownership.


Moreover, historically high mortgage rates are adding to the strain. Following a brief dip in September, 30-year fixed mortgage rates have been on an upward trend, reaching 6.54% by the end of October, according to Freddie Mac. With elevated rates and climbing prices, the dream of homeownership feels increasingly out of reach for many renters.


The American Dream of Homeownership Persists—Despite the Challenges

A recent LendingTree survey underscores this sentiment, revealing that more than half of renters worry they may never achieve homeownership. Among those who want to buy, 65% point to down payment costs as their main barrier, while 52% say that home prices are too high in their desired areas. Additionally, 39% report that their credit score is an obstacle to securing a mortgage.


Even with these barriers, the desire for homeownership remains strong. The survey found that 83% of Americans would prefer owning a home over renting. This preference spans all demographics, including those with annual incomes below $30,000 (76%), Gen Z respondents (79%), and individuals without children (77%).


When asked why they wish to own, most respondents prioritize the personal freedom and stability it brings. Nearly two-thirds want the flexibility to make their own choices about their space, while a similar percentage values the stability that comes with not having to renew a lease. Financial reasons, such as wealth-building and property appreciation, rank lower in importance, cited by only 41% and 44% of respondents, respectively.


Renting vs. Buying: The Cost Comparison

It’s important to remember that while homeownership has many benefits, it comes with costs. In many markets, renting remains more affordable than purchasing a starter home, a consideration that prospective buyers should factor into their decision.


As the housing market remains challenging, the path to homeownership may require patience and strategic planning. For now, understanding these hurdles and planning accordingly can help first-time buyers navigate their options, keeping the dream of owning a home alive despite the odds.

Turn Extra Cash into Lasting Legacy: Help Your son/daughter Own a Home!

April 28, 2025
Helping Your Child Buy a Home: Smart Strategies with Tax Benefits  Many parents want to help their children buy a home, but doing so in a way that also provides financial and tax advantages is key. Here are a few strategies to consider when assisting your son or daughter with homeownership while maximizing tax benefits. 1. Gifting Money for a Down Payment The IRS allows individuals to gift up to $18,000 per recipient annually ($36,000 for married couples) without triggering a gift tax. If you stay within this limit, your child receives a down payment boost without tax consequences. 2. Loaning Money to Your Child Instead of gifting, you can lend money at the IRS’s Applicable Federal Rate (AFR), which is often lower than traditional mortgage rates. Structuring it as a formal loan allows your child to build equity while you may receive interest income. 3. Co-Signing or Co-Owning the Home Some parents choose to co-sign a mortgage or co-own the home. While this can help secure better loan terms, it also means shared financial responsibility. If you co-own, you may be able to deduct mortgage interest and property taxes on your tax return, depending on usage. 4. Buying the Home as an Investment Property If your child pays you rent, the home could be classified as an investment property. This allows you to deduct expenses like mortgage interest, property taxes, and maintenance. However, rental income must be reported to the IRS. Final Thoughts Every financial situation is unique, and tax laws change. Consulting with a tax professional or estate planner ensures that your support aligns with your financial goals and tax strategy. Helping your child buy a home is a generous step—doing it wisely ensures benefits for both of you.

Using Our Screening Score Sheet for Rental Applications

April 21, 2025
When applying for one of our rental properties, we use a comprehensive screening score sheet to ensure all applicants are held to the same standard. The score sheet evaluates various aspects of your financial stability and rental history, helping the landlord make informed decisions while maintaining a fair and transparent process! Here’s a breakdown of how we assess your application utilizing the screening score sheet: 1. Length of Residency: While longer periods at previous residences typically suggest reliability and commitment, we understand that some applicants may be first-time renters. We welcome first-time renters, and on the screening score sheet, you can assign yourself a "1" under "Length of Residency" if this is your first rental experience! 2. Collections: We review any outstanding collections, including monthly utilities or bills, as well as loans (excluding medical bills). This helps us assess your overall financial responsibility. Your estimated monthly payment for all your loans, utilities and bills is also taken into consideration. 3. Rent-to-Income Ratio (per household): To ensure you can comfortably afford the rent, we require that your monthly income is at least 2.5 times the rent amount. This ratio helps us verify your ability to manage rent payments alongside other living expenses. 4. FICO Score: While there is no specific minimum FICO score, we do take it into account when evaluating your financial health. A higher score indicates a history of responsible credit management. 5. NSF/Late Payments & Landlord Disputes: We look into your rental history to ensure that there are no frequent NSF (non-sufficient funds) or late payments, and that there are no unresolved disputes with previous landlords. Please note that all application charges are non-refundable, and every occupant over the age of 18 must submit a separate application. Our scoring system ranges from 0 to 21, with 15 being the lowest acceptable score. All approvals or denials are ultimately decided by the property owner. We do not operate off a first come first serve basis, so if you are curious about the status of applications prior to applying, please don’t hesitate to call our office! By using our screening score sheet, we aim to create a rental environment where both tenants and property owners can thrive. This score sheet can be found on our site, under the Before You Apply Manual, as well as under “Rental Resources”.

Declutter and Earn: Join the Outdoor Swap Meet at the Downtown Recreation Center in Henderson!

April 16, 2025
Looking to declutter your home while making some extra cash? The outdoor swap meet at the Downtown Recreation Center in Henderson is the perfect opportunity! Whether you’re cleaning out your closets, clearing space in your garage, or finding a new home for gently used toys, books, and clothes, this event is your chance to turn those items into money. Each booth equals two parking spots, and registration is required at least one week in advance. All booths are assigned randomly, ensuring a fair and fun atmosphere for all. Remember, only second-hand items can be sold, so it’s a great way to recycle and give your items a second life. Event takes place April 19th & May 17th! The swap meet opens at 7am, so come early to shop! Admission is free for all ages, making it a perfect outing for families looking to find unique treasures. Ready to get started? Simply register on the City of Henderson website to secure your spot. It’s time to clean out, earn some extra cash, and find something new – don’t miss out on this exciting event at the Downtown Recreation Center!
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