Even in ‘affordable’ Terre Haute, renters face obstacles to homeownership
Home buyers face tough market in moving from renters to owners.
Terre Haute native Ryan Michael bought a new home this spring. Michael and his wife felt it was time to officially buy, with a new baby on the way.
They noticed the number of available homes decreasing, so the hunt was on for affordable housing for this family new to the market.
“I think its super hard for people who are automatically at a disadvantage to buy a home,” he said. “My wife and I are newlyweds and since we are so young, our credit score isn’t exactly ideal. So buying a ‘new’ home that wasn’t going to break us was a difficult task for us.”
Data shows that in 2022, about 65 percent of Americans live in a home they own, while 34 percent rent. Locally, while the housing market has remained strong, active listings have plummeted as prices have skyrocketed. According to local real estate agents, active housing listings are at the lowest they’ve been in five years — a roughly 60 percent decrease from February 2020, pre-pandemic. During this time, the sale price jumped by as much as 25 percent, as well. In short, the number of affordable, available homes is a challenge for new buyers.
Popular real estate websites like Zillow allow home buyers to compare how much the house was originally sold for, what it would be worth today, and also a tool that estimates its value in years to come.
“Something that my wife and I noticed was that while using Zillow, basic family homes that were built in the 2000’s for around $135,000 are now being sold for $350,000. We are getting less for more,” Michael said.
‘Less for more’ is a familiar phrase to many home buyers over the past year. Nationally, home prices have risen more than 8 percent over the past year.
Recent home buyer and new resident to Terre Haute Shelby Kuhns said her family felt the pressure of a hot housing market when they relocated for work.
Kuhns said the properties they saw in Vigo County vary widely in price, with homes on the south and east sides of Terre Haute being “far pricier” and where entertainment options, lower crime rates, and better schools are concentrated.
Both Michael and Kuhns families wound up moving to different parts of Terre Haute, and both families paid more than what they originally budgeted.
“I think buying a new house is hard these days. If you aren’t in the right place at the right time and don’t have all of your ducks in a row, buying a house is nearly impossible,” she said.
