Terry Greene, Home Builders Association executive officer, said the increase in home prices is making it more difficult for many to participate in home ownership.
He said, "Chattanooga and Hamilton County saw housing prices increase in 2015 over 2014, making it more difficult for middle-class families and first-time home buyers to realize the American Dream of home ownership.
"While more homes were sold last year in Chattanooga, their median price also increased $10,000, or 7 percent, to $152,000 per unit sold. As the increase in land prices and excessive local government regulations combine to push housing prices skyward, the challenge to make housing more affordable in our own community has become increasingly difficult.
"As a result, when faced with the reality that they cannot afford to purchase the home they desire, younger people or middle-income households are more likely to rent rather than buy or move to other areas where housing is more affordable.
"Most real estate agents in the Greater Chattanooga area will say that the number one challenge in selling new or existing homes is the perfect storm of fewer housing starts and increased prices. Combined, available inventory has been driven down at an alarming rate. In Chattanooga, the inventory of homes for sale fell by 23.3 percent in 2015 to 3,623 homes. Not a good sign."