T
he US housing market is facing a severe supply crunch, making it difficult for first-time buyers to find affordable homes. According to Freddie Mac's latest report, there are approximately 30 renter households for every available home for sale, up from less than 10 in 2006. This shortage has its roots in the Great Recession, which significantly reduced new home construction.

    As a result, first-time buyers face not only an expensive market but also intense competition with other would-be homeowners. The report notes that entry-level prices have grown 63% more than high-end home prices since January 2000, making it even harder for those seeking to buy their first homes.

    High mortgage rates have further exacerbated the situation, with the average rate for a 30-year fixed mortgage hitting 6.54%. A recent survey found that over half of renters believe owning a home is out of reach, with cost being the primary barrier. Many respondents cited high down payment costs and unaffordable home prices as major concerns.

    Despite these challenges, the dream of homeownership remains widespread, with 83% of Americans preferring to own rather than rent. However, the survey suggests that personal freedom and stability are more important motivators for would-be buyers than potential long-term financial gains. Ultimately, renters should carefully consider whether buying or renting is the better option for their financial situation.