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I don't think the 3.5% down payment market is very big. >Between July 2019 and June 2020, the average down payment for a home amounted to 12% of the home value

by carom 5y ago

I don't think the 3.5% down payment market is very big. >Between July 2019 and June 2020, the average down payment for a home amounted to 12% of the home value. In the first three months of 2021, 48% of home buyers made a down payment of at least 20% of the home value. 21% of home buyers in that same period made an all-cash purchase. [1] It sounds like 69% are >= 20% down or all cash. I don't think enabling lower income access to housing is hurting our housing market at all. 1. https://www.fool.com/the-ascent/research/average-down-payment-house/ https://www.fool.com/the-ascent/research/average-down-paymen...

lesuorac 5y ago
A 3% increase in vacancy rate caused a ~10% decrease in apartment pricing in NYC [1]. Housing is very much at the margin and a small increase/decrease of demand will have an outsized effect on price. However, I'm not going to argue that everybody poorer than me shouldn't have access to a house just so I can get one at a cheaper price ... [1]: https://inhabit.corcoran.com/new-york-city-residential-rental-market-report-august-2020/ https://inhabit.corcoran.com/new-york-city-residential-renta...
- onlyrealcuzzo 5y ago
  > However, I'm not going to argue that everybody poorer than me shouldn't have access to a house just so I can get one at a cheaper price ... What's wrong with renting? Why are poor people entitled to home ownership when most of the young middle class isn't? Why can't they rent? There would be no problem with rent if home-ownership wasn't a massive handout from the government by guaranteeing that home prices appreciate more than interest rates. This is extremely unfair to poor people as it is currently - because they can't get in line to get massive amounts of free money. Best they can get is SNAP. Meanwhile, your local millionaire is getting >$20k per year in asset subsidization. I don't think that even more manipulation is the solution to the problem. If the government could get out of the business of pumping up house prices while keeping benefits like SNAP, that would go a long way toward fixing inequality.

by carom 5y ago

lesuorac 5y ago

A 3% increase in vacancy rate caused a ~10% decrease in apartment pricing in NYC [1]. Housing is very much at the margin and a small increase/decrease of demand will have an outsized effect on price. However, I'm not going to argue that everybody poorer than me shouldn't have access to a house just so I can get one at a cheaper price ... [1]: https://inhabit.corcoran.com/new-york-city-residential-rental-market-report-august-2020/ https://inhabit.corcoran.com/new-york-city-residential-renta...

onlyrealcuzzo 5y ago
> However, I'm not going to argue that everybody poorer than me shouldn't have access to a house just so I can get one at a cheaper price ... What's wrong with renting? Why are poor people entitled to home ownership when most of the young middle class isn't? Why can't they rent? There would be no problem with rent if home-ownership wasn't a massive handout from the government by guaranteeing that home prices appreciate more than interest rates. This is extremely unfair to poor people as it is currently - because they can't get in line to get massive amounts of free money. Best they can get is SNAP. Meanwhile, your local millionaire is getting >$20k per year in asset subsidization. I don't think that even more manipulation is the solution to the problem. If the government could get out of the business of pumping up house prices while keeping benefits like SNAP, that would go a long way toward fixing inequality.