Are investors hurting first time buyers?
Someone in my tribe just sold the family home and had to find a place to rent in Las Vegas — like NOW.
I helped find that narrow list of houses that fit all the requirements — pets, storage, price, location — and it was frustrating ot only having limited choices but also having those that fit the criteria rented before we could decide and apply.
And that was for a well-established couple with good income and job history who knew what they wanted. I have other clients in town who are not so fortunate and wind up frantically scouring Craigslist or real estate sites for prospective housing.
Given the low inventory of houses, particularly decent starter homes, rising interest rates and steady appreciation, it’s tough out there for first time home buyers and renters to find what suits them and that they can afford.
The National Association of Realtors blames at least some of this on investors, those people who bought up homes during the housing recession and continue to pay cash for newer starter homes.
In a letter, NAR said Fannie Mae was hurting everyday real estate buyers and helping big investors
“These investors do not expand the affordable housing stock,” NAR President William Brown wrote. “Rather, in this limited market they drive up the price of rents and remove affordable inventory from the hands of American homeowners.”
But OwnAmerica CEO Greg Rand told HousingWire that the NAR is giving short shrift to both renters and the free enterprise system. Renters need a place to live also, he said, and investor-purchased homes provide that.
“I would say homebuyers are competing with renters, and that’s life,” Rand said. “You don’t have a right to own a home if somebody else wants to own it more.”
Besides, he added, people who already own homes are helped as home appreciation supports the value of their family investments, although he acknowledged that first time home buyers and low-income potential buyers do face more competition.
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