LINK First-time homebuyers are getting squeezed out by investors : NPR
(Investors have been buying up a lot of real estate, driving up prices)
Record-high home prices and low inventory were already making things hard for first-time homebuyers. But new numbers show that investors are driving even more people away from homeownership.
"Investors are coming in and pushing out the first-time buyers," says Lawrence Yun, chief economist for the National Association of Realtors. He says the percentage of home sales that went to investors rose to 22% in January, up from 15% a year earlier.
Meanwhile, sales to first-time homebuyers fell from 33% a year ago down to 27% in January. Under more normal conditions, first-time homebuyers would make up about 40% of sales, says Yun.
2
Enjoy being online again!
Welcome to the community of good people who base their values on evidence and appreciate civil discourse - the social network you will enjoy.Create your free account
5 comments
Feel free to reply to any comment by clicking the "Reply" button.
I noticed that around here for sure! Decent first time homes in nice neighborhoods get sucked up by investors, who then charge rents that are too high for young people starting out. It is making first time home ownership very expensive, due to having to outbid deep pocket investors.
Barnie2years
Level 8
Feb 20, 2022
2
Corporate investors at that. People do have some knowledge that in the last year there has been an extraordinary transfer of wealth from the have's to have nots. This is one of the main areas this has happened.
It is very sad, former working class suburbs are becoming rental estates. The average price in Sydney for a house is getting close to a million now, out of reach for most young who now work casual/ part time so are unable to borrow. Not to mention rents eat up a majority of pay packets so difficult to save a deposit.
Corporations/ non human entities should be unable to invest in suburban housing would help; talking homes. And people should be limited in what they may purchase. Something has to change.
puff
Level 8
Feb 20, 2022
2
Add to that the rising interest rates and one can guarantee that part of the economy will slump. That is the Republican plan: Republican owned corporations raise prices creating inflation and economic slowdown (then blame it on Biden), and then Republican operatives in the Federal Reserve raise interest rates to also knee-cap the economy (and then blame that on Biden).
racocn8
Level 9
Feb 20, 2022
3
Enjoy being online again!
Welcome to the community of good people who base their values on evidence and appreciate civil discourse - the social network you will enjoy.Create your free account
Share this post
Categories
Agnostic does not evaluate or guarantee the accuracy of any content. Read full disclaimer.