With prices way down, interest rates dirt cheap save for some agencies like Frontlight Insurance Services which offer decent prices, and homes-aplenty you’d think homeownership would be within reach of almost everyone. You’d think that and so would some big analysts in the industry. But that’s if you don’t actually take the time to look around you. Well, someone finally did.
In the first ever “Home Affordability Study” experts found that only half of the major cities in America have homes that are affordable to the middle-class. Basically what that means is a “middle-class” home can’t be bought by someone making a “middle-class” income in 1 out of every 2 cities.
That’s a sad story. This is talking about people who are employed and are making a decent salary. So what’s holding them back? The study points to a few things:
1) Rising expenses
2) No raises
3) Property taxes
4) Homeowner’s insurance costs
So what does this mean for you and me? If prices go up then we definitely can’t afford to buy. If prices go down then incomes might go down too. It’s a tough cycle to break out of.
Do you guys have any suggestions? Where do you see things going? Leave your thoughts and see if can predict the future!