Can you afford to buy a home in 2020?

According to statistics from the Department of Housing and Urban Development of the United States; The population of people without access to the purchase of a home increased by 2.7% during the year 2019.

For the third time in a row, there is an increase in the percentage of homeless people, while some records state that the national average of rents has increased by 36% over the past ten years.

About 34% of US citizens, representing an amount of more than one hundred million people, are renting, and it is estimated to have been going on since the 1960s. 

Although renting is not economical either, it is the alternative they have within reach, so if you wonder if can you afford to buy a home in 2020? You have to evaluate recent statistics and examine the real possibilities of buying a house and financing a mortgage.

Housing prices have increased during the last months of 2019, and according to recent reports; the reality is that by 2020 the purchase of a home will not be easy for the average citizen since the average annual salary is still well below the gross income needed to be able to aspire to a house with a low national average price of $ 257,000.

However, according to some projections, the real estate market is expected to experience a boom providing lower mortgage rates, allowing accessibility to housing. 

But statistics say that although there is a period that shows that prices can be more affordable, the truth is that housing prices are expected to continue rising in the short term, which lowers the population’s expectations regarding their real possibilities of being able to acquire a home in 2020.

Real estate behavior in 2020

Real estate markets are constantly developing throughout the country, land, and labor costs have undergone some adjustments, but confidence in most of the United States markets has been maintained over the past decades. 

This is an indication for the adjustment market and for real estate analyzes that has estimated that the value of homes may experience an increase of 2.2% during 2020, which continues to leave millions of families out of reach. They want to buy a home.

Even when many aspects of the real estate market show a clear improvement, the margin of access to housing prices exceeds the annual income of an average US citizen.

The lower financial costs can facilitate the access of many people to the home of their dreams; it is considered that lower interest rates may allow it to be less expensive to finance a 30-year mortgage. 

While real estate agencies have been given the task of boosting the purchase and prices, but the truth is that housing sales continue to fall because there are not so many homes in the market at really affordable prices for the majority of the population that needs a home.

The purchasing power of a large part of the population of the United States is the high point for the purchase of the real estate, so if you want to know if you can you afford to buy a home in 2020? So the most important thing is to evaluate the amount of your income and your borrowing capacity primarily.

Many figures indicate that a large number of housing offers can be found in the real estate market at prices low enough to cover the demand, the number of new home construction has also increased, and the projects continue to add up. However, the percentage of sales decreased by 1.7% during the past month, which indicates that demand decreased.

In 2020 you will have the opportunity to buy housing.

It is estimated that the increase in rents is mainly due to the impossibility of having sufficient resources to buy a home. The fact that house prices make it inaccessible; is seen as the reason why the number of people who decided to rent increased twice, compared to the number of people who bought housing.

This is part of reality; the high cost of rents also affects the budget of American families, getting affordable housing to buy and rent has been one of the great problems of the United States, which forces a large part of the population to live in Houses in really poor conditions.

This is a situation that continues to affect millions of families for more than a decade after the real estate and financial crisis since 2008.

On the other hand, the relationship between supply and demand causes housing prices to be increasingly high, which is why more than a third of the population of this country must allocate more than 30% of their income to the rent payment.

Some data indicate that families with lower incomes face the worst possibilities in terms of accessibility to the purchase and rental of housing since it has to challenge the higher costs compared to any other social segment of the population.

The supply of housing for these very low-income families is 35 homes available per 100, which means that there is an insufficiency of 3.9 million homes in the United States for this social group.

Forecasts for the US real estate market in 2020

After all, efforts to overcome the effects of the crisis that produced the housing bubble in 2008 that ended up significantly affecting the financial market, some aspects continue to challenge the population.

Access to housing for a social group is a reason for analysis, especially if a large part of this population wants to know if you can afford to buy a home in 2020? And under what conditions it can be done.

Knowing under what economic guarantees can be considered the acquisition of a home in the United States is a hot topic, which worries many families who only have average incomes and who know that they can face high or variable mortgage rates, subject to financial changes or crisis that could also end up leaving them homeless again as it happened since 2008 when many families had to give their homes to financial institutions.

It is expected that by 2020, some mechanisms can be generated to balance the margin of difference between the supply and demand of housing for families with average incomes in the United States. 

This has been the factor that has most affected the price index that makes millions impossible of people to have access to a home and finance a mortgage, even if they have to allocate more than half of their monthly budget to pay rent to live under a roof