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Rising Cost Of Living ‘Forces’ U.S. Homeowners to Sell Their Houses

Real Estate & Mortgage

One could argue that the American Dream, for many, has always been intertwined with the image of a white picket fence enclosing a family home. But as the saying goes, “Dreams may change.” Today, that iconic fence is being uprooted by homeowners across the nation, not by choice, but by compulsion.

A staggering report now reveals that one in every seven U.S. homeowners feels compelled to sell their houses, primarily due to the skyrocketing cost of living. With this trend, America stands at the precipice of a severe housing crisis. Now, let’s dive deep and understand the housing crisis that the U.S. is going through:

Photo Mix / Pexels / In 2023, the United States is on the verge of a grave housing crisis.

From Picket Fences to Financial Pressures

The genesis of this housing dilemma is not just about mortgages or increasing property taxes. It is about a multi-pronged attack on the finances of middle-class Americans.

In the past decade, healthcare costs have surged by over 20%. Similarly, college tuition fees have seen an even steeper rise. The once mundane task of filling up a grocery cart now takes a hefty chunk out of household budgets.

In an era where wages have remained relatively stagnant, homeowners find themselves bearing the brunt of increasing bills. Sometimes, this pushes their monthly expenses beyond their income. So, what do they do? They tap into the biggest asset they own: Their homes.

Pixabay / Pexels / Couples with the rising inflation, the housing crisis is making the situation worse for average Americans.

 

The Domino Effect on the Housing Market

As homeowners sell, supply increases. But the buyers, a significant chunk of whom are young professionals and first-time homeowners, are often priced out due to inflating home prices and stringent mortgage conditions.

As a result, more homes remain on the market, neighborhoods change, and communities that once thrived with local involvement see a decline in long-term commitment. The transient nature of residents affects local businesses, schools, and the community spirit.

The Silver Lining? Rental Market Boom

While the homeowners’ plight paints a grim picture, there is a silver lining for investors and the rental market. As homeownership becomes elusive, rental demand soars.

This trend is not just in urban cores but also in suburban neighborhoods where families, reluctant to leave familiar surroundings, opt to rent instead of own. This shift has resulted in a rise in single-family rentals. Thus, creating an opportunity for investors.

Curtis / Pexels / The only silver lining is that the demand for rental homes is soaring.

The Intangible Costs

Beyond dollars and cents, selling one’s family home has emotional and societal implications. Homes are not just brick and mortar. They are repositories of memories, places where babies took their first steps, and holidays were celebrated.

So, forcing homeowners out of these sanctuaries is like erasing chapters from their life stories.

Looking Ahead

The United States is no stranger to housing crises. From the Great Depression to the 2008 financial meltdown, the country has weathered housing storms. But this looming crisis has a different undertone.

Thus, it is not rooted in speculation, mortgage fraud, or economic downturns. But in a slow and steady suffocation of the middle class.

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