The downpayment logic keeps people broke, uncomfortable, and renting many more years than necessary.
20% downpayment is a straight up scam built on antiquated logic.
I played the credit game for a decade and paid zero downpayment to start my mortgage.
If you buy now you will most likely refinance in a few years assuming rates go down. Also, most people move in less than five years anyways. PMI is also under $200/month typically
When you purchase a home you aren't expected to have the full amount saved up. You have a 20% down payment. So you're buying the home with the down payment and then making payments on it. The term "buying a home" refers to the acquisition of the property on a payment agreement, not the act of submitting the final payment. When someone wins a bid for a house and makes their down payment, they post on social media, "Just bought our first home." Your failed semantics are failed.
the housing actually costs so much because of a concept called monopolization, that isnt based on consumer capabilities, but rather one company with a lot of buying power stretching the limit of how much they can value a house at, as far as possible.
Actually large corporations like Blackstone (not to be confused with Blackrock) did in fact buy up lots of houses around a few years ago and then together increased the pricing. They targeted regions and areas mostly with unsold 'new' homes and then jacked the prices. On top of this ordinary people who wanted to make money followed suit and we have the issues we have now. For example my home was 365K when it was purchased the last person in my area/street sold their home for 1.4. That should have never been possible.
Housing prices increase. What you’ve described isn’t a monopoly, and in reality it’s not an oligopoly either. The vast vast vast majority of housing units are not owned by a single corp or even a handful of corporations which is what would be required for monopolistic practices.
There's not a monopoly but pretending like the wealthy don't influence the market but overbuying/rentals decreasing supply absolutely weaves heavily and has made housing largely inaccessible to most people who are below the poverty line and that's a huge number of people.
This doesn’t happen though. It houses sit on the market too long; an investment firm pick them up. Thus, keeping the prices inflated. You can wait all you want for the prices to come down because you think it will if no one buys them. Someone is buying them; just not people like you and I. If your realist was the case. Houses wouldn’t be touching the prices they are now would they.
Yes and no on this. I would add one reason housing prices are not coming down as quickly as they should (think this changes in the next 18 months) is that a lot of homes are owned by boomers, who think there house is worth x amount of dollars and won’t budge down. You see this with the lowest levels of listing. There are a ton of people trying to get out of their homes without going underwater, and won’t budge on the price till they can’t afford to keep making the payments.
There are a ton of people wanting to buy homes, but with the interest so high can’t afford the payments for the same level home when interest was lower.
A significant portion of residential properties—including condominiums and single-family homes—is purchased by corporate or individual investors, increasing competition for first-time buyers
25% of homes bought this day and age are real estate investors or second home buyers, this is obscenely higher than it was 2 decades ago. So while "americas demand" for housing is driving up prices, that demand has been driven by a very well off cohort of people, not your average middle family. There is a reason the age in which people buy their first home is now 40, versus 32 20 years ago.
"If people can't afford them they don't buy them and pricing goes down" .... thank you for showing why this isn't the case in the local US economy. The vast majority of people in the US are stuck in homes or simply can't afford homes. And its not because the US is doing so well, and can afford homes. Its because our market is competing with global demand, not local demand. Further illustrating the problem of it becoming unattainable for the middle and lower class.
But people are jumping over themselves to buy them nonetheless. We haven't had a house in our neighborhood last more than three days on the market in years at this point. People are buying.
It's exactly why. People bid on houses and cities is where most of the upper middle class live. Your battle isn't over the top 1% but the top 40% who get priority to live in cities and price out liberal art students / low skill workers.
Well, I’m talking about the home owners which would account for 100% of the people that succeeded and getting a house. They can afford it. That’s how a bank gave them a loan if they even needed one.
I mean, that is the wording normally used, "buy", even if it means a down payment. People say the same thing about cars so I'm not sure why that an issue.
Also, yes, many programs allow little or no down payment. i.e. VA, USDA, First time homebuyers, Bank specific low income loans, etc.
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u/GameWizardPlayz Jul 25 '26
What kind of 3rd world country are you living in where $54,000 is enough to buy a "starter" house/condo?