High Cost of Housing in Today's Market and Modern Home Ownership

Everywhere around the world, it is becoming visible that younger people will find it hard to purchase houses that are being built, so the question is who are going to buy the houses that are being built then?

Houses are becoming expensive and they can go up to 1000% and we know that owning a home where you can pay for it within the space of 30 years is cheaper than renting an apartment in most part of the world and why a lot of us want to own a home, the only reason why we cannot own homes is because we cannot afford them.

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Houses have become extremely expensive in the last 12 months compared to its price in the last year, and these houses are very expensive and less than 25% of homes that are sold are affordable. If people cannot make purchase these homes, does that mean that there wouldn't be people to buy them? Well, the answer is No. Forget about those housing industry crashing articles or videos you see where they only they say it will crash in the next 1 week because it is not going to crash in one week.

While you are yet to buy one, it doesn't mean that the housing market would crash because it is expensive. This is because, houses do not need to be affordable before anyone can get one, in developed countries, people do not save money to buy a house, they save money to pay the down-payment of the house. Although the prices of houses are increasing, the down-payment percentage is reducing drastically as homes are being bought now with a down-payment of about 1 - 2%.

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This shift in the housing market reflects a broader economic trend where accessibility to home ownership is less about the full price of the house and more about the ability to meet initial down-payment requirements and secure a mortgage. Therefore, despite the high sticker prices, houses continue to find buyers - those who are able to navigate and meet the evolving financing criteria.

This situation underscores a significant economic disparity, where home ownership becomes a distant dream for some, while others can still attain it through different financial means. The question of who will buy these increasingly expensive homes is thus answered by the changing landscape of real estate financing, which continues to adapt and evolve in response to market conditions and consumer capabilities.

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