Homeownership at 50-Year Low — So What? House ownership especially for young people or first-time buyers is less of a necessity than many people would think. The rate of interest indicator is a good representation of such behavior. Plus, the choice between buying a home and renting one is among the biggest financial decisions that many adults make. … “Home prices are continuing to rise in most parts of the country far faster than wages, making it harder for the average American to afford a home. Meanwhile, mom-and-pop investors, many of whom have abandoned the stock market, are also getting into the landlord game, purchasing single-family homes or vacation rentals as investments. While rising home values are pushing more sellers to start …show more content…
The realtor market as suffered a decline in affordability particularly in the last 5 years. “Q”. So if we compare this expenses to those of a person who bought its first house 40 years ago, it is easy to see the changes. And not only the costs for mortgage rise as the availability of houses decreased. This is another economic consequence of the last economic crisis, that drove the personal finances to a new low. People are now holding on to their starter homes, as they can’t afford to upgrade to a bigger home. This results directly in a decrease of starter homes and their prices to first time buyers looking for a house they can afford to put a down payment on. Living in a house could even cost you a better job. If you're anchored to a house, you can't as easily uproot and move to an area where there are a lot of jobs. “Q”. The market as plugged in the last years, and depending in your house type you might find yourself having trouble to move on with your life. A house is a big investment. So what if you can’t sell it right away and get your money back? For many this isn’t an alternative. AS such young people, who enjoy the freedom and mobility, would see buying a house as an irreversible life changing decision. Such unappealing factor often drives people away.