(As reported in the Wall Street Journal, Home Buyer Shortage Threatens Recovery, Thursday, 08/11/16.)
The housing market may have clawed its way back to a modest recovery; but there are a tremendous number of middle-class Millennials who seem destined to remain permanent renters.
Nationwide, homes have generally regained their values lost in the crash. But according to economists, most of the price gains stem from a lack of inventory rather than a surge of buyers. In fact, this lopsided recovery has shut out millions of aspiring homebuyers who’ve been forced to rent due to a scarcity of affordable homes, swelling student loan debt, increasingly tough credit standards, and over-burdensome federal regulations that have made qualifying for a mortgage more difficult and lenders less willing to lend. In fact, in 2016, home ownership remains at the lowest point since the Census Bureau began tracking data in 1965.
“I don’t think we are in a normal housing market,” said Lawrence Yun, chief economist for the National Association of Realtors. “The losers are clearly the rising rental population that isn’t able to participate in this housing equity appreciation. They are missing out on a big source of middle-class wealth.”
According to Nela Richardson, chief economist at Redfin, “We’re seeing a divide between the wealth of homeowners and the wealth of renters.”
For many Americans, owning a home has provided protection against rising rents and has been a key component of retirement savings and wealth creation. The fact that many young Americans aren’t buying homes could cause an economic ripple, the results which may be felt for decades.
Thankfully, at Mortgage Wealth Advisors, we’ve been successfully helping first-time buyers purchase homes – AND we’ve been showing them how to use their mortgage and their homes to build wealth over time. We have a track record of helping clients implement mortgage, cash flow, and home equity strategies to conserve and build wealth when buying or refinancing their home.
Entrust your mortgage only to the most competent, qualified, and Certified Mortgage Planning Specialist®. Judge for yourself why New York homeowners, homebuyers, and industry professionals consistently recommend Warren Goldberg when their families, friends, and clients need a mortgage.
Call us well before you find your new home so we can ensure your mortgage matches your needs, complements your financial plans, and helps you attain your financial goals.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.