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Amherst releases 2023 market outlook report
Expect resilience in the housing market despite softening home prices, according to Amherst in its 2023 market outlook. The firm expects only a gradual decline in home prices due to counterbalancing upward pressures on prices, such as low inventory levels, strong employment and strong consumer spending. Interest-rate hikes are dampening short-term demand for home ownership, while reinforcing the value proposition of single-family homes for lease.
Key themes include:Housing demand driven by significant deficit in quality homes: The U.S. housing market is 1.6 million housing units short of what is needed for existing households, and Amherst estimates a deficit of 3 million households relative to early/mid-2000s levels. The majority of this deficit is in single-family versus multifamily homes. Don’t Stand Pat on 60/40 Portfolios: Real estate is an ideal candidate for reducing risk in a tradition