FRESNO, Calif. (KFSN) — The purchase of a home has long been regarded as key in the path towards upward mobility.<\/p>\n
InvestorsObserver Financial Analyst Sam Bourgi believes many young people could face a lifetime of renting a home instead of buying one.<\/p>\n
“It’s become a lot harder now with housing prices at astronomical levels,” Bourgi said. “It’s becoming a lot harder for young people to afford their first time home. You’re seeing a lot of young people now investing in their 401K’s, which is positive. But housing has become very difficult unless you’re willing to move to parts of the Midwest where it’s a lot cheaper.”<\/p>\n
Bourgi cites another obstacle: high mortgage interest rates, which top 6% for a 30-year loan.<\/p>\n
“The inventory remains low because people are locked into mortgages,” Bourgi said. “They don’t want to sell and then get a mortgage that’s twice as high as what they currently have now. Everything is frozen in place and housing costs have become very difficult, especially in California and parts of the Northeast.”<\/p>\n
The new year often brings renewed financial hope, but Bourgi believes inflation will continue to affect everyday costs.<\/p>\n
“By almost every metric, people are struggling a lot more and the economy seems to be bifurcating from those who have and those who don’t have, and it’s becoming a lot worse,” Bourgi said. “I think you also see that in the housing market as well.”<\/p>\n
Bourgi adds that many families went into deep debt during Christmas, pushing the dream of a home purchase further away.<\/p>\n
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