Have you ever had the feeling that you can’t catch a break? American homebuyers are definitely starting to feel that way. In addition to rapidly rising interest rates and a lack of affordable inventory, a new potential obstacle makes it harder for them to buy a home — short-term rental investors.
Property in cities like New York, San Francisco and Los Angeles was already notoriously unaffordable. The average home price in Los Angeles is over $1 million. About 25 years ago, $1 million would have bought you a nice house in Malibu in a city where you’d be rubbing elbows with the stars. Now, it buys you a fixer-upper in an emerging neighborhood — if you are lucky.
