Is now a good time to buy a house?
Yes! But only if it fits into your overall life goals.
Owning a home is often said to be part of the “American Dream” by media outlets and the culture at large. However, according to the May 3, 2023 US Census Bureau statistics on homeownership and rental vacancies, only 66% of Americans own their own home.
That means that for one reason or another, more than one third of Americans do not own a home. So far the year 2023 has seen a great deal of economic turbulence, which is bringing the benefits of homeownership into question. Below are a few reasons why now could be a great time for you to buy a house.
Changes in Family Situation: Major changes in family situations are often a good reason to sell former homes and buy new homes that better fit all members of your family. For example, when getting married, it is often more cost effective for two people who were renting to combine resources to purchase one home together. Similarly, in a family where elderly parents or grandparents need more care and attention, it is often necessary to sell one or more separate homes to combine the family in one large property that will suit the needs of all family members. The debate as to whether it is more cost effective to buy a home or rent is raging in the US now, with both the cost of home loans and rents increasing. However, the average one or two bedroom rental property will not accommodate the space needs of multi-generational families, making a home purchase a much better investment.
Changes in Employment Status: Traditionally, people have moved for new job opportunities, whether that be changing companies all together, or taking a promotion in another office/region in their current company. With the rise of work-from-home and hybrid-work situations, moving for employment reasons have changed. At the height of the pandemic, huge numbers of people moved from expensive urban areas to the far-flung suburbs or rural areas. Now that the pandemic is officially over, it turns out that these new working arrangements may not be changing. A recent Time Magazine report showed that as of May 2023, only 42% of workers are required to be in the office full-time, whereas 30% of workers have a structured-hybrid working status, and 28% of employees are fully flexible. Now that working situations are solidifying, it could be a good time for people to return to urban centers that they left in the pandemic. Conversely, for people who remained in the cities throughout the pandemic—thinking that they would be required to return to the office— now might actually be the time to quit expensive rentals to buy a home in the far suburbs. If a company has committed to permanent structured-hybrid or fully remote status, now is a great time to buy a home in the suburbs.
Changes in School Status for Children: Oftentimes, families move to accommodate the schooling needs of children. Sadly, geography still dictates the quality of educational opportunities for many children in America. In fact a Center for Housing Policy research paper states that, “moves to stronger school systems may have an independent positive impact on educational achievement.” When considering a home purchase, families often seek school districts with historically high student achievement in academics, sports, or the arts. These school districts are often in towns and neighborhoods with more expensive housing. Parents may push themselves economically with the purchase of a new home to ensure their children are able to be in a particular school district. However, once children have graduated, they may be able to capitalize on their investment, by selling the home in the expensive neighborhood, and down-sizing to a different town or smaller home in their current town.
These are only a few reasons why now may be a great time to purchase a home. While owning a home is often seen as a wise economic choice and an opportunity to build wealth, it is also part of a larger vision of a particular lifestyle. Start by thinking about the kind of life you want to live, when considering whether or not to purchase a home in 2023.
Imagine how you want to feel:
Commuting to work, or working from a home office
Sharing a home with extended family members
Blending the needs of raising young children with aging-parents
Having children attend a particular school
Continuing to maintain a big house, when all of the children have moved on to college or homes of their own.
Or, moving to a smaller home in a new community
When you start a home buying decision with your overall lifestyle goals and dreams, the economic factors will naturally fall into an appropriate position in the thought process. You will be able to drown out the media hype of economic worries, and focus on what is best for your life at this moment.
Contact real estate consultant Dr. Carly York to discuss your 2023 home buying or selling questions.
