The Infuriating Reason Why You May Never Be Able to Buy a House
Young people these days just aren’t buying houses. It could be because nobody can land a job that pays enough to afford a house or because millennials are buried in student debt. However, Money is reporting that the real reason young people can’t afford to purchase a house is unfair competition from wealthy investors who can pay cash for the properties. “Investors can just swoop in, drop a pile of cash, and buy the houses they want,” explains Martha C. White. “These investors then turn around and rent these properties to young adults for increasing amounts every year, making it even tougher for young would-be homeowners to ever save up enough money for a down payment.”
One in four homes that are sold are bought by investors paying cashm and they are most likely to snatch up cheap starter homes—the exact type of home young adults can afford and are in the market for. The investors don’t flip and resell the houses; instead, they rent them at skyrocketing rates. The bad news is there is no end in sight. “The home supply is diminishing, but the investor demand is not going away,” says Lawrence Yun of the National Association of Realtors. Thus, rents will continue to rise, and fewer millennials will be able to buy a home. File under: depressing news for young people everywhere.
Learn how to buy your first home by reading Nolo’s Essential Guide to Buying Your First Home.
Do you own a home? How did you buy it?