First-time homebuyers are faced with the challenge of finding and buying a home in today's crazy market. As prices of homes and rents are shooting across the U.S., many buyers are already having a hard time looking for a home to live in. What are other alternative options for first-time buyers?
As previously reported here on Realty Today, first-time homebuyers are already having a hard time looking for a house in the real estate market. Aside from the rising prices of homes in the market, prices of rental homes are also on the rise. Add this to the fact that first-time buyers are competing with real estate investors who have better credit scores or are able to pay in cash.
These challenges may have led some first-time buyers to wait till next season in hopes of scoring better homes in lower prices. However, Realtor.com notes that there are smaller, more affordable homes being made readily available to first-time buyers in response to the increase in demand.
"Affordable housing is becoming a bigger issue, especially in cities," said the State University of New York's urban and regional planning professor Robert Silverman. "These are creative solutions that have come up to address this pent-up demand for entry-level housing."
1. Micro-apartments
Micro-apartments are increasing in popularity because of their generally cheaper prices than studio apartments. The publication notes that in New York, opting to go for a micro-apartment can save you 15 percent or more. Some of the micro-apartments even offer additional benefits such as Wi-Fi and housekeeping services.
2. Co-living spaces
Co-living spaces can be likened to a college dorm, as people share a space and all the expenses that come with it such as utilities and other services. Certain co-living communities also run a check on their potential tenants to ensure a more harmonious setup.
3. Yurts
The publication notes that yurts, which are prevalent in Mongolia, are now becoming a popular housing option in the U.S. Yurts can cost only $20,000 for a 706-square-foot yurt. Additional expenses include the yurt's foundation and other utilities, which would run you for another $20,000.
