Buying a home started to be accessible for many Americans in the 1950s with the introduction of the 30-year mortgage. The economic and political dominance of the US in the post World War II era also provided buyers with a favorable environment for homeownership. However, in recent years, it has become increasingly unattainable for many due to the disproportionate rise of home prices relative to incomes. In the current environment, aspiring homeowners must conduct an honest and realistic assessment of their situations, since buying a home exceeding their means can have financially detrimental consequences.
Although homeownership in recent decades has been seen as a common milestone in one’s life, making a decision to buy a home is complex, and can be challenging. It requires a careful consideration of various factors including location, price, interest rate, and monthly mortgage payment, among others. What is evident is that buying a home is no longer for the average person.
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The Well Tempered Investor 