> You are ignoring the reality many are facing, where essentially all the available options are above their means.
Again, this just simply isn't true. Go to Zillow, and set your filter to houses under say $150k and check the metro areas of Kansas City, St Louis, Dallas, Little Rock, Memphis, Cleveland, Charlotte, Detroit, Milwaukee, Pittsburgh, Cincy, etc. etc. and you will get hundreds of hits in every one of those metro areas. These are not rural communities, millions of people live and work in these and other metropolitan areas.
People who say this are convinced they need to move to SF/LA/NYC/Boston/Seattle. Yes, real estate is prohibitively expensive in San Francisco, we get it. So don't move there.
The bottom end of the housing market is usually junk or otherwise tied up legally. Just because you get hits, doesn't mean that's a viable option.
I just did a housing search recently and found this out the hard way.
Look at the median for an area and then figure that you can go 10-20% below that for a "fixer upper". Even that isn't an option if you don't have DIY skills.
See above, and try it yourself. On a $150k house a first time buyer can use FHA to put 3% down, and if FHA approved the sale then by definition it is not a fixer upper.
That means a first time buyer can get into a $150k house with FHA for $4,500 down and $1,300/month (which includes property tax and home insurance).
This means someone making $25/hour can afford to buy one of these homes, right now, today.
People who say this are convinced they need to move to SF/LA/NYC/Boston/Seattle. Yes, real estate is prohibitively expensive in San Francisco, we get it. So don't move there.