American dream of owning a home out of reach for many in tight markets

Samantha Hawkins had a clear vision for her first home: the 29-year-old from Austin, Texas, wanted a detached house surrounded by a yard for her dog, a garden and a stable space where she could put down roots.

Across the US, many have faced similar roadblocks: prices popped as a confluence of forces suppressed supply and inflated demand, leaving many middle- and lower-income buyers with a dwindling number of housing options, or forcing them into rentership.

The challenges Austin buyers are still experiencing show just how difficult the dream of owning your own home has become for a broad swath of Americans.

For middle-class Austinites like McKinley being outbid by cash offers in Austin, this much feels clear: investors are part of the problem.

Beyond having the resources to place higher bids and pay with cash, investors often buy homes sight unseen, and typically skip appraisals and inspections. Some companies also use algorithms to place bids within hours of homes being listed, and Wall Street-backed institutional investors are viewed as particularly problematic.

In one east Austin neighborhood, Airbnb in June controlled about 12% of the housing units, Inside Airbnb found. While about 270 units were available for long-term rent during a 2020 US census survey, more than 1,300 whole home units were available on Airbnb in June.

A new, smaller trailer is $1,500 a month plus the lot fee, and three-bedroom apartments in her neighborhood top $3,500 a month. The family is at a loss over what it will do next, but Valdez expects her days of staying home to raise the kids are done.