The housing market isn’t a bubble, but rather about basic fundamentals. This means we are talking about supply and demand. The basics we all learned about in economics 101.
We are a couple of years into the pandemic when folks could never imagine homes or neighborhoods would demand such prices. These may be smaller homes, larger homes or homes that once needed so much work that they would sell at a deep discount. Home prices have seen double digit increases in Suffolk County, Long Island. Local realtors and local brokers recognize the changing market and so do sellers who are looking to benefit from the increased values. The housing inventory continues to be at a new time low. The buyers caught on the sidelines of the home buying process are or will be paying higher rents with very few rentals available. The Shortage of housing will further drive up rents in areas such as Long Island. Those buyers who are waiting on the sidelines to buy will be waiting many years for the home prices to decrease while paying $2,300 or more for a two bedroom home and $2,900 and up for a reasonably sized three bedroom home. The higher rents will only make it more difficult for these “sideliners ” to save while spending over $30,000 per year in rents.
According to local realtors and local brokers first time buyers are seeing increased competition that has not been seen by previous generations. They are seeing money from global capital, funding from institutional investors renting single family homes and from smaller investors. Some of these investors may also be operating Airbnbs from the Hamptons, to Islip/Ronkonkoma area around the airport and Long Island Railroad or in quaint villages such as Port Jefferson.
will “sideliners” cost themselves money with increased housing cost and rents or will they make out by trying to “play” the market? What will be the cost of the rents be for the “sideliners”?
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