Blame the millions of illegal aliens who have invaded the US. They have to live somewhere in that creates undue competition, prices go up.
I watched something recently that 40% of homes in some markets are now owned by people that are not living in them as their PRIMARY residence.
Meaning it is a second home(vacation/seasonal home) or it is a rental. AirBnB is a big part of that in many markets now.
Then you have real estate investors either small or large own a major percentage of homes in certain markets. Most of these are being rented monthly to people who can not afford/qualify for the down payment and have to rent.
In markets like Orlando, Cape Cod, Palm Springs or any other vacation destination there are now a large percentage of homes that are owned by people based on renting them nightly or weekly. Their MORTGAGE is based on the revenue generated by the rental income. This could be a very dangerous dynamic IF we enter a long recessional period where people cut back on vacations.
This is similar to 2003-2005 when people were buying houses no money down with no income verification. When the market turns, investors are much quicker to dump properties than an owner occupied residence.
On this, we can agree.
Imagine how many single home properties have been turned in to Sect 8 housing.......
This is nothing... in the 70’s I knew people who bought homes and paid 17% interest... hoping they could get their homes and refinance is a few years.
Anyone who wants to buy a home needs to consider the rates could go MUCH HIGHER. And if they don’t, just refinance if and whn rates go down.