This article was fantastic. I'm a complete novice on housing but it seems like the most important assumption this thesis hinges on is the 20% down payment. I found stat that 48% of homes purchased have 20% or higher as a down payment, but once filtering for first time buyers the % drops to 28%. New home buyers are what we're relying on here, right?
If you changed down payment to say 7-10% to adjust for this, it seems your affordability line gets crossed much quicker.
This article was fantastic. I'm a complete novice on housing but it seems like the most important assumption this thesis hinges on is the 20% down payment. I found stat that 48% of homes purchased have 20% or higher as a down payment, but once filtering for first time buyers the % drops to 28%. New home buyers are what we're relying on here, right?
If you changed down payment to say 7-10% to adjust for this, it seems your affordability line gets crossed much quicker.
Great write-up!