Delaware is facing a serious housing shortage as we emerge from the COVID pandemic. That shortage affects many people whose income is considered “average” in Delaware (right around $33,628 per individual or around $68,287 per household). Many average-income families are finding affordable housing tough to come by. Others fear that sometime in 2021 or 2022, they may not afford their rent or mortgage payments, which can end up with residents being displaced from their homes. Along with a housing shortage on the market, these are concerning trends to see as we move into the second half of 2021.
COVID’s Impact on the Housing Market:
COVID had a massive impact on the housing market in almost all the United States, which is no exception in Delaware. Many families are finding themselves struggling to find affordable housing, and the same is true in Delaware. Many homes have risen in value, but incomes have stayed relatively stagnant or even taken a hit due to the COVID shutdowns. Many states are experiencing low inventories of homes, and Delaware is indeed one of them. Many people fear losing their homes due to the inability to pay as they get back on their feet in the second half of 2021 and into 2022, and the problem will only worsen if home prices continue to surge to the same levels we have seen in recent months.
Housing Market in Delaware:
Inventories are now lower in Delaware than they were in 2020. Home prices are also rising rapidly, with an estimated 13.6% increase in home values in 2021. The average home in Delaware costs $236,300, and the average cost is $152/square foot. However, those numbers are quickly rising when many homes on the market in Delaware right now are listed at prices north of $300,000. These are worrying trends as we emerge from the COVID pandemic, and home prices continue to rise, and income stays largely stagnant. These trends are not sustainable for the long-term future.
As for right now, Delaware is largely a seller’s market.
Impact of the Current Market:
The impact of the current housing market in Delaware is favoring the wealthier residents in the area. Many average-income families are struggling to find homes available for them, and the housing inventory is 55% lower today than it was a year ago during the COVID pandemic.
Buyers consistently change their list of “must-haves” and often have to compromise on certain features of a home, such as hardwood floors or granite countertops. Compromising these “desires” is often necessary to find a home that fits in the family’s price range.
The Coastal Network:
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