Just putting this here so I can refer to it in 6 years.
Buy a home as a home first, as an investment second. (unless you’re buying it strictly as an investment).
Lawrence Yun, chief economist of the National Association of Realtors in Washington, has a natural inclination to promote the health of the housing market, since NAR members depend on home sales to make a living. So when Yun warns about affordability issues causing a potential slowdown in home sales, people listen.
And from Nick Timiraos with the WSJ
New Housing Headwind Looms as Fewer Renters Can Afford to Own (google the title to read the whole thing; you should)
Last decade’s housing crisis could give way to a new one in which many families lack the incomes or savings needed to buy homes, creating a surge of renters and a shortage of affordable housing.
The latest problem looks very different from the subprime mania of the early 2000s, but it shares one trait: Policy makers in Washington appear either unaware or unwilling to do much about it.
This part is particularly relevant to the Charlottesville area:
As rent takes a larger share of income, families could face greater challenges in saving for a down payment. This could restrain a housing market that has failed to provide any real lift to the economy in the current expansion.
While the U.S. is on course to add almost 400,000 apartments this year, the vast majority of these are luxury rentals for young, urban professionals, says Mr. Terwilliger. This leaves a shortage of more-affordable supply.
And from NBC29:
“I think we’re seeing affordability continues to be a significant concern. The first-time homebuyer is priced out of many segments of the market, there’s no good solution to that,” Duncan said.
Affordable housing in Charlottesville is a concern, and has been since I started practicing real estate in 2001. There are no good solutions.