Across many large cities, street life at mid-day has changed. Gone are the pre-pandemic business workers streaming out of office buildings for a quick bite at lunch. Empty malls and commercial buildings are a common sight today in ways no one could have imagined two years ago.
At the same time, housing has gotten tighter and more expensive in those cities. A person might wonder why they don't simply convert those empty office buildings into condos...solve two problems at once! It turns out, there are several reasons:
The word of the day is inflation. Inflation is mostly happening right now because manufacturers and distributors need to pay workers more to attract and retain them, so consumers pay more to make up the difference. How does inflation affect the housing market? In several ways:
Some fun facts:
62% of Americans believe a 20% down payment is necessary, though most mortgage loans require less than 5% down payment.
First-time home buyers make a median down payment of 7%.