Priced Out


DEFINITION of 'Priced Out'

The state of being unable to invest in a particular market or purchase a particular product or service. When someone is priced out of a market, their choices are to simply remain out of the market, to wait for the market to become more affordable, to improve their own financial situation to the point where they can afford to buy, or, if possible, to consider a different market. For example, someone who was priced out of the luxury car market could look at economy cars instead.


"Priced out" is commonly used to refer to the real estate market. For example, residents of cities with extremely high average home prices, such as Newport Beach, Calif., would be said to be priced out of the market if they could not afford even an entry-level home. The options available to someone who is priced out of a real estate market would include buying in a different area, waiting for the supply of housing to increase enough to lower housing prices or getting a higher-paying job that would allow them to afford a property.

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