Thanks to rising home prices a decade after the foreclosure crisis, it has become harder for most New York families to buy a home, the New York Post reported.
According to the non-profit Center for NYC Neighborhoods (CNYCN) study, “Aftermath: Affordable Homeownership in New York City,” New Yorkers are being shut out from buying a home because of high prices, while those who are current homeowners are struggling to keep up with housing costs, taxes and necessary repairs. The report also mentioned that while home prices have grown, incomes for New Yonkers have not kept pace.
Meanwhile, a group that is benefiting in this current market are real estate investors who, according to the report, “are increasingly outbidding working New Yorkers who are seeking to own.”
The CNYCN cited its findings and recommended solutions in the study. For instance, there is a rising population of senior homeowners 65 and older, most of whom lived on fixed incomes and need services, who will need support as they grow older. This includes assistance for reverse mortgage buyers and for those who need affordable financing for home repairs and retrofits. Additionally, as there are more senior homeowners, there is a 34 percent decline in homeowners 35 and younger -- largely due to rising home prices and stagnant wages.
Home purchases from real estate investors have doubled since the Great Recession recovery, preventing the typical New Yorker from owning, said the Center. Its recommendations included instituting a flip tax and cease and desist zones to help communities who experience “an influx of real estate investment.”