Home Buyer's Dilemma Explained
If you do not already own a home it's getting harder and harder to buy one.
Meanwhile, rent outstrips wage growth.
What would you do?
Key Ideas
- Those who seek to buy their first home will have a very difficult time finding one that is affordable.
- There was a small window of buying opportunity from 2009 to 2011 but that window has since been closed.
- Making matters worse, rent prices accelerated in 2011 and far outstrip wage growth.
Median vs Average Wages
It's important to note that hourly wages are averages. The median wage earner is even worse off.
The latest median wage data is from May of 2016. It shows real median wages decline in seven out of the last 11 years.
Keep looking....
Once in 300, you may get lucky with the selling owner's situation to buy a home under the market.
Still, it's more expensive than homes outside of Silicon Valley, but it's the same as renting.
Pay loan to your own home than just paying money as if it's trashing.
Or
Rent from a nice owner and you help them by being a great tenant. Sometimes, nice owners won't raise fees if you are a good tenant.
