The highest mortgage rates in more than two decades are keeping many prospective homebuyers out of the market and discouraging homeowners who locked in ultra-low rates from listing their home for sale.

The highest mortgage rates in more than two decades are keeping many prospective homebuyers out of the market and discouraging homeowners who locked in ultra-low rates from listing their home for sale.

The dearth of available properties is propping up prices even as sales of previously occupied U.S. homes have slumped 21% through the first eight months of this year.

The combination of elevated rates and low home inventory has worsened the affordability crunch. Where does that leave homebuyers, given that some economists project that the average rate on a 30-year mortgage is unlikely to ease below 7% before next year?

  • SCB@lemmy.world
    11·
    1 year ago

    The same thing that prevents companies from buying. Literally every house available right now - it’s not worth it. Even if they own them all they would still rent them, driving prices down as supply increases.

    This is such a weird question. It’s like asking what happens if companies buy all farmland. It’s just so implausible lol

    • Franzia@lemmy.blahaj.zone
      21·
      1 year ago

      https://www.axios.com/2022/02/18/investors-homes-wealth-families

      You have good points, but this issue isnt really acting like normal markets. Renting space in this desperate market is a lot more like a cartel than simple supply and demand seems to suggest, and:

      https://nypost.com/2021/04/20/an-office-vacancy-crisis-is-haunting-nyc-but-owners-remain-bullish/

      There is also nothing stopping banks from simply holding onto these long term assets, asking for the right price, rather than following the market and lowering the asking price.

      • SCB@lemmy.world
        11·
        1 year ago

        Get what you give what?

        And people are currently incentivized to buy houses and rent them because of extreme shortages in supply. This is all very predictable behavior. No one is buying every house. Lots of people are buying several houses to rent as income - increasing supply makes that unprofitable over mortgage costs, disincentivizing the practice.

        You’re not gonna beat supply and demand, ever.

              • SCB@lemmy.world
                11·
                1 year ago

                End single family zoning, end parking minimums, change how easements and lot size minimums work & especially minimum distance from streets in high end neighborhoods, end height maximums where safe to do so (sorry SoCal, this ones tougher for ya), things like that