Are changing market trends and the growing number of SFR investors hampering the dream of buying a home for 19M millennials who are stuck renting?
Whether or not you are a millennial trying to compete against investors for your starter home, or an investor trying to make a wise investment we can help. www.TheMeridianWay.com
The following is a snippet from the Inman News article, by Steve Cook, entitled “Competition for starter homes will only heat up. Here’s why”
“Many prospective first-time buyers cannot find a home that they can afford, or, even worse, overpay for their first homes, thanks to the legions of investors in single-family rentals (SFRs), whose cash offers often beat out bids from other buyers. Competition with investors is one of the reasons 19 million millennials who want to buy a home and have the income to do so are still renting…
…However, it is true that investors in single-family rentals prefer the same starter-sized homes sought by first-time buyers. According to CoreLogic, the share of starter homes purchased by investors peaked at over 1 in 5 homes over the past two years. “It’s a truism that homebuyers today are more likely to cross paths with investors during an open house than at any other time in the past two decades,” McLaughlin says.
Last year, investor purchases were the highest on record and nearly twice the level before the 2008 housing crash. Through the balance of 2019 and the first half of 2020, conditions for investors will continue to favor them over first-time buyers.
And here’s why:
- Investors are less sensitive to rising prices than homebuyers
- SFR rents are rising as fast or faster than home prices
- SFR Investing is easier today than ever
- Single-family investors have financing sources that are as good or better than those available to first-time buyers
Remember, whether or not you are a millennial trying to compete against investors for your starter home, or an investor trying to make a wise investment we can help. www.TheMeridianWay.com