If Nobody Can Afford A Home...Who's Going To Buy Them?|What is the Main Reason on Rocket High Prices

For most millennials, born between 1981 and 1996, the path to homeownership has been fraught with pitfalls and false starts. Members of the generation — the oldest of whom are 41 — have built less wealth than previous generations, delayed life milestones like getting married or starting a family, and lived with their parents for longer periods of time. Add it all up, and the homeownership rate among millennials is lagging that of previous generations. Despite their desire to settle down in homes of their own, millennials face a bleak outlook for one big reason: There simply aren't nearly enough homes for the 72.1 million members of their generation. In the decade following the financial crisis, homebuilders were reluctant to produce more homes, contributing to a now massive housing shortage. Even as the pandemic housing-market madness fades, millennials have to contend with a new host of housing headaches: higher borrowing rates, persistent inflation, and rising rents. Homebuilders, who were finally ramping up construction as profits soared during the pandemic, are pulling back once again as fears of a recession grow, providing little hope for salvation from the housing-supply crunch. For first time homeowners, a lot of these small dollar mortgages are available for affordable, low cost properties in urban, suburban or rural communities. Prior to the pandemic, more than a quarter of home sales nationwide were priced below $100,000. Yet just 23.2% were purchased using a mortgage, compared to 73.5% of homes priced at or above $100,000, according to the Urban Institute. It is particularly hard for people who are buying smaller houses with smaller mortgages to find a lender and to get that mortgage. And they also surprisingly are more expensive. And the issue has been getting worse. #mortgage #millennials #young #home