With a chronic shortage of affordable and available homes, the nation's population is struggling to find housing options in today's marketplace. A severe lack of new construction is partially to blame for the acute shortage of available housing. Today's scale of underbuilding and rising demand for available homes has led to an imbalance of supply and demand. Towards the end of 2021, the United States was short between 5.5 million and 6.8 million housing units, according to the National Association of Realtors. This statistic factored in single-family homes, townhouses, condos, and rentals, too. With the housing market not budging any time soon, consider these 5 tips when purchasing a home in 2022:

1. Understand what you can afford

Firstly, it's important to understand what you can afford and can't afford when searching for a home. It's easy to fall in love with a gorgeous home you saw during your online search, but the question is- can you afford it? It's more important than ever to understand your budget and choose a new living space that is in your price range. Sticking to a budget doesn't mean you won't find a beautiful space- it just means you won't have to sacrifice in other areas of your life to accommodate housing costs. (Take a look at available homes in your desired area here.) 

Consider these four factors before committing to your dream home: How much you have saved for a down payment; how much your household earns; what debt you carry; and your credit score. Your credit score will...