500K More Sellers than Buyers - Yet this Niche Is Starved for Supply
Background
Imagine scrolling through listings and seeing a sea of “For Sale” signs, but far fewer “Sold” stickers. That’s exactly what happened this spring: about ~1.9 million homeowners were trying to sell, while only ~1.4 million people were ready to buy. In simple terms, there were ~500,000 more sellers than buyers nationwide. For everyday folks hunting for a home, this means lots of choices - and for sellers, it means pulling out the stops with price cuts or sweetened deals to win a sale. To make matters tougher, the typical U.S. home now lists for around $432,000, and borrowing that money costs about 6.7% in interest on a 30‑year loan. That combination of high sticker prices and expensive mortgages has sent many would‑be buyers running for cover, leaving an unusually large pile of unsold homes.
But here’s the twist: while the upscale and mid‑priced market is sputtering, the world of affordable rental housing plays by completely different rules. At Ocean Ridge, we focus on homes people actually can afford - apartments and communities where rent is in reach for working families. And that corner of the housing market shows none of the same stress. If anything, it’s booming.
Why Affordable Housing Stays Resilient
1. There Simply Aren't Enough "Cheap" Homes
Think about your own neighborhood. You might see a few modest apartments or a small manufactured‑home park tucked between fancier townhouses - and those affordable options are almost always snapped up first. That’s because, across America, there is a huge shortage of homes priced for lower‑ and middle‑income renters. A recent study showed we’re about 7 million homes short of what extremely low‑income families need. Even folks making $50,000 a year can afford only about 9% of the homes currently on the market. So while there may be plenty of houses for sale overall, the count of truly affordable units remains desperately low. That gap keeps occupancy in affordable properties high because there just aren’t enough alternatives.
2. High Mortgage Rates Drive More People to Rent
Here’s another flip: when borrowing costs climb, fewer people buy and more people rent. With home loans flirting with 7% interest, first‑time buyers have hit a 30‑year low in activity, and many young adults are either living with family or sharing cramped apartments rather than taking on sky‑high mortgage payments. Meanwhile, even homeowners who snagged 3% pandemic‑era loans feel “locked in” and won’t give up their cheap financing to chase a bigger house at today’s rates. All of that keeps rental demand strong - especially for the more affordable apartments and communities that are within reach for the average person.
3. Affordable Rentals Outperform in Ups and Downs
Everyday rental homes do something fancy: they combine stability with steady income. Nationally, vacancies in lower‑cost apartment buildings are running around 5%, the tightest in two years, and nearly six out of ten renters in these buildings renew their leases. In our apartments and manufactured‑home communities, we see long waitlists and very low turnover, because tenants value consistency and community. And when the economy dips, demand for budget‑friendly housing actually goes up, as people trade down from pricier options. Remember 2020? While swanky high‑rise and office properties struggled, affordable rentals kept collecting rent and filling beds with hardly a hiccup.
Closing Thoughts
That headline of “500,000 more sellers than buyers” may sound scary, but it mostly tells the story of pricier homes - and it doesn’t describe the world where Ocean Ridge lives. Our bread and butter is affordable, necessity‑based housing - apartments and communities where people on modest budgets can build a life. In this segment, demand still far outstrips supply, mortgage rates only deepen the rental pool, and occupancy stays near capacity through every cycle.
If you’ve ever worried about whether housing is too expensive or whether renters will ever find a stable home, know this: affordable rental housing remains a rare exception in today’s market imbalance. It’s where families find security, where communities thrive, and where investors can count on durable income through thick and thin. While the broad housing market catches its breath, we’ll keep delivering safe, clean, and community‑oriented homes - knowing that our focus on affordability not only uplifts people, but also underpins a resilient investment strategy. In a world where so much is uncertain, affordable housing stands out as the one place where need, stability, and opportunity intersect, and that’s a vision worth believing in.
