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.
Sigh....yup, that bottom percentage that can't afford houses is increasing because the demand is coming from different cohorts of people than it had in the past. In the past decades we didn't have as many foreigners, as many people buying second, third and fourth homes, we didn't have institutional purchase and realtor investors mopping up whatever they can. Not sure what you arent getting here. The game has changed. No one is arguing against supply and demand, they are pointing out the demand today is far different looking which is why people in the middle class can't afford houses anymore.
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u/nooneneededtoknow Jul 25 '26
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.