How The U.S. Housing Market Has Been Impacted by the 2008 Recession

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The financial crisis that occurred in 2008 threw everyone off unexpectedly. After all, it had been the biggest market disruption since the Great Depression. The number of renters to owners has decreased from 43.3% to 38.5%. The people that endured or forced to take up this shift were mostly far east and west coasters, older millennials, and wealthier households. The recession and its effects took most of a toll all the way up to 2014. It might not seem like a significant number, but we can construct a visual to show exactly how this decline has played out. 

An Increase in Rent

Not only is the amount of renters increasing, but so is the actual pay of rent itself, which has risen faster than income. The average rent in the top fifty markets has risen by 22.3%, while incomes have nationally fallen by 5.8% since the recession. To put this into context, the average homeowner spends approximately 30% of their paycheck on making and paying rent. Seems to be a bit much, right?

A Step Down from Homeownership

Not only has there been an existing decline in homeownership, but as well as many of the markets that were hit hardest by foreclosures. As rent increased, renters were having a harder time meeting the payment deadline, eventually being forced to foreclose. Although, most of this foreclosure ended up benefiting no one. Lenders weren’t even able to balance payments themselves. 

The Fortunate Few

There was only a small amount of markets that weren’t directly impacted by this recession. Most of the housing markets that saw the smallest increase in renters were in New York, Connecticut, and Boston. 

Cash Home Buyers Is Here to Help

It can be a gamble to buy a home, and if you’re not comfortable with owning one, it may be in your best interest to sell. Contact Cash Home Buyers today so we can take your homeownership off your hands!

 

Do You Need a Fresh Start? When To Consider Selling Your Home

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The reality is, the majority of Americans live paycheck to paycheck. On top of paying the bills that come every month such as the mortgage, electricity, water, and other personal needs including groceries and hygiene products, we still have other bills. It could be the credit cards we used to buy furniture and Christmas gifts, a car payment, student loans, something we financed, and essentially this list of additional bills can go on and on. Carrying debt means that not only are we living paycheck to paycheck but essentially we’re taking on additional debt in the form of interest that won’t go away until the account is paid in full.

It’s no surprise that the desire to start all over again is alive in so many of us. We’ve all made mistakes with money even if it was as minor as buying the wrong pair of shoes that we can no longer return, the feeling of defeat is something we’ve all experienced. If life were as simple as hitting a reset button the majority of us would have hit it by the time we turned 32. But since we don’t have this option, it’s time to be practical. This begins with a financial plan.  

Creating a Financial Plan — Deciding What Goes and What Stays

Think back to a time when you didn’t have debt. What did your life look like? Perhaps you weren’t driving the same vehicle, your student loans were non-existent, you didn’t own so much stuff, or perhaps you didn’t have the house you live in today. It’s easy to get comfortable to a certain lifestyle but once you realize you can longer afford that life, it’s time to make changes.

Making a financial plan begins with listing all of your debt. Write down the lender and exactly how much you owe. Then, determine how long it’s going to take to pay off those accounts. Once you have a clear picture of what your true debt looks like, it’s time to decide what should stay and what should go. Do an inventory of our home. Clean out the garage and see what items you could possibly sell.

One of the biggest items on your list will easily be your home. If you can longer afford your mortgage and your income won’t be changing anytime soon, it’s time to sell.

Selling Your Home for Cash

Imagine not having a monthly mortgage. Or imagine if that payment was even half of what it is today. You could pay off those credits and you wouldn’t feel like you’re consistently suffocating. When you sell your home for cash, not only will you have the ability to start fresh but you can make wise decisions with a clear mind that will put you in a better position then if you were to stay in the one you’re presently in.

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Explore How Selling Your Home in El Paso Can Provide You With Financial Freedom

El Paso Cash Home Buyers is an investment company. We buy homes and invest our own resources to fix them up and make them move-in ready for the next dwellers. When you sell us your home, we are investing in you. Our cash offers are competitive because we know that this amount is going give you the leverage you need to begin your new journey. But above all, our offers are based on the real market value. We’ll never ask you to make any repairs and we always buy as-is. You can think of us like a reset button. Sell us your home and start fresh!