The Rise of Housing Costs: Why Aren’t People Buying?

A house, whether you’re renting one or planning to buy one, getting a place is expensive enough. There are tons to think about and payments to handle which means that expenses get in the way on top of spending on a house. However, owning a house is a foundation of every growing citizen especially those that have a family. But housing costs are rising since the 50s and until today, the amount to pay or buy for a house is becoming too much even renting space has quadrupled over the years.

The inflation of prices, both in buying a house and renting one, is a major national issue and it affects consumer credit, just read this post here. This is one of the few reasons why people aren’t buying. It’s just too high to invest and why is that?

Minimum wage

This doesn’t come as a surprise. Too much demand for house signals contractors to build more but with higher prices and yet significantly workers are earning less. Many employees are opting out to rent their own home and save until they reach an ideal amount to buy a house. But as inflation rises when it comes to housing costs, it will take these employees a very long time to save up.

Rising mortgages

This is unbelievably true; rising mortgages is an issue both in homeowners and those that want to buy their own house. Mortgages increase their rate percentage year after year and if people aren’t getting paid enough to secure their own house, it’s impossible to pay off a mortgage in time.

Increasing population

The increase in the general population affects the rise in housing costs. Since there are too many families growing, the demand for houses grows through the years. This is an opportunity for contractors to develop more lands and build more properties to cover the growing household. Yet again, even with the growing population, there’s still so little job opportunities.

The rich and able

When you say rich and able, these are people who actually have enough finances to buy their own houses, travel a lot, eat in fancy restaurants, make business calls and so on. They are the ones who can actually afford to go all out and buy one or two properties without a single sweat. And they are the target in most property contractors; because they simply can afford to spend.

It is not hard to see why most people aren’t buying their own house anytime soon. Combined with bills, minimum or low wages, mortgages and everything in between, rising house costs have already affected almost 60% of the population. And on the looks of it, there’s not changing in the near future.