First-time homebuyers being priced out of market

First-time homebuyers made up the smallest buying percentage ever at just 26% last year with the milestone becoming increasingly out of reach for many young Americans. NBC’s Sam Brock has more on the tidal wave of obstacles one young Florida family has faced in their search for their first home.

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[jasonscott]

It should be illegal for investment firms to buy residential real estate

[GrimKage]

The problem is greed. So called property tycoons raking in a fortune by leeching off of rent payments. While the regular working citizen who actually produces value, can't afford a single property while giving up their hard earned money to rent payments.

[nhansen]

Two things I'd like to know: how many of those homes are being snatched up by big corporations and how many of those corporations aren't even domestic? I've heard too many stories of people putting in bids only to get outbid by a big corporation.

[darnellcapriccioso]

For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[blakejordan]

My wife and I are going through this exact thing. 25 years old, both work full-time jobs (I also work a part-time job), both have college education….. it’s ridiculous. We’ve done everything that we were told would help us buy a home. It’s discouraging.

[CCEkeke]

NBC missed one of the biggest problems why homebuyers are getting outbid. Wall Street and Private Equity are purchasing single-family homes like candy, outbidding homebuyers by tens or hundreds of thousands of dollars.

[fbbWaddell]

In my town, before the pandemic, the average price of a house was $180, 000. This year, the same houses are valued at $400, 000. And, people who have the income, offer more than the cost of the house. For instance, I know a business owner who sold his house for $65, 000 above the asking price. So, if you find a house for, lets say $200, 000, because that is your budget and someone else comes along and offers $265, 000 for the same house, you are not going to get that house. There are bidding wars going on with houses that are raising the price. First time home buyers don't typically have the extra income to offer $65, 000 more. Not only that, but, in my town, there are people who are losing their houses because property values skyrocketed to the point that they can no longer afford the taxes on their house. Some people's houses have more than doubled in value. It's a crazy market out there.

[rhapsodicchimera]

Gosh, being a young person in this time period is hard. Can't even get a small simple house because major corps and real estate folks buy up everything. Even going through govt programs is a pain. Just praying I can finally get my own home before 35. 🙏🏾🙏🏾🙏🏾

[elvismark]

After selling a couple homes in 2022, I'm anticipating a housing crisis in order to buy inexpensively. As a backup plan, I've been thinking about purchasing stocks. What recommendations do you have for the best time to buy? On the one hand, I keep reading and seeing trader earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?

[nicetryguy]

Wait, so they make just under 200k a year and he’s saying he can’t afford a house in the 400k range? Can someone explain what I’m missing here?

[Raymondjohn]

Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.

[boomeradley]

i was born in 1991 and my generation has no future. when we turned 18 we were kept out of the job market. now entering our 30s we are being kept out of the housing market. food is now unaffordable and so are basic needs. HOW ARE WE SUPPOSED TO SURVIVE?

[myfriendgoo]

This is another manifestation of the income inequality problem in the U.S. We have concentration at the top not seen since the robber baron era, and a consequence of that is tons of idle capital seeking return. That's predictably led to bubbles in other places like stocks, crypto, art, etc. Now you've got firms like Opendoor gobbling up houses. That's crowding out and pricing out the firt-time homebuyers and causing artificial scarcity. It's another way the 1% is picking the pockets of the 99%.

[hilaryh]

Ahh people don't realize how tough it is for first time home owners out there... Yes, you can save for a down-payment but then imagine that goal post gets moved everytime you reach that amount. Plus, good luck finding a home once you can save up. The inventory has been crazy low. My husband and I are in a similar situation. We saved enough money for a down-payment for a $500k house ( we live up north in PA) but then prices rose $200-$250k in two years. We missed out on many homes during the pandemic because we were outbid with $20-120k cash offers over asking price. The inventory has been, and still is crazy low. Meanwhile the interest rate keeps going up along with rent, energy, food etc. means we are saving less each month despite our best efforts. The small amount we had in stocks took a nosedive as well... but in sum in order to get a house with the same budget means we have to save up a larger and larger down-payment... We will eventually get a house but having a place to live should not be such a burden. We've had to give up essentially living for 4 years to get where we are now.

[Rohammers]

200k combined and can’t afford a home? How bad are they with money jeez

[adriarose]

I've seen more condos and apartments being built within San Antonio and outside the city limits. If you drive from San Antonio to Austin, you can see more duplexes and apartments being built in abundance on both sides of the interstate highway. It's like we're being cornered to settle for rental existence instead of owning our own homes and land properties. This is insane! Look at how people in China are being cramped into coffin-sized structures. I'm really fearful for our future. Yeah, property tycoons, corporations, and elites are to blame for this home-buying crisis we're experiencing. So what are we going to do about this mess???

[aaronblack]

We should begin to fine corporations that hold onto empty homes as investment stock or ban them from holding more stock than necessary. Then charge them exorbitant fees that make it disadvantageous to hold property as investment. That way tens of thousands of homes will be placed back on the market so that first time buyers will at least have a chance.

[littlelady]

Um yeah, I’ve also been looking for around 2 years and I’ve lost 3/4 of the offers I’ve submitted to all cash buyers. Usually for a property management company who will turn around and use the homes as rental properties. It’s like Wall Street wants to keep us stuck as tenants forever

[darren]

Can we also talk about the market being monopolized! How can we compete with multi-million dollar companies in the mix as well !?

[MrMds]

They have a $200k income but can't afford a $400k home. Their numbers aren't adding up. They must be deeply in debt from their wedding, student loans, etc.