Jessica F. Simmons

WILSON N.C. — With graduation nearly a semester away, Barton seniors are nervous and uncertain about the future.

While some seniors are planning for graduate school, others are looking for work. As finding a job in this economy has proven to be a more difficult achievement, experts said that finding a place to live has proven to be even more grueling.

CNN Business reporter, Anna Bahney, said that Americans looking to buy or rent a home have had it rough as the year goes on, in her article, Why it’s getting even harder to keep a roof over your head, (Bahney, 2022). 

“Rents are up by double-digit percentages in some cities. Meanwhile, buying a home is the most unaffordable it has been since the mid-1980s,” she said. 

According to the article, just one year ago, a buyer who put 20% down “on a median priced $363,800 single family home and financed the rest with a mortgage rate of 2.88% — the average at the time — had a monthly payment of $1,208.”

“Today, a homeowner buying the median priced home, which is now $396,300, with a mortgage at the current average of 6.29% would pay $1,960 a month in principal and interest. That’s $752 more every month” said Bahney.

Current research has shown that inflation has gone up tremendously.

Bahney said that a significant culprit of this has been the pandemic.

“Part of the reason housing has become so expensive is that the record low mortgage rates seen during the Covid-19 pandemic increased demand for homes, which in turn pushed prices higher,” said Bahney.

“With multiple buyers competing for a limited pool of homes for sale, bidding wars and all-cash offers became common, driving prices up to record highs,” she said.

As inflation continues to grow, the new generation expressed their disappointment towards, and after, graduation.

Senior Shalom “Apples” Barnes majors in Health Promotions.

She said that she plans to graduate early in the fall semester.

“With the way things are going now, I’m not really sure what I should do after graduation,” said Barnes.

“I’m already looking for jobs, but until I find one, I may have to move back into my parent’s house until I can get on my own two feet. I hate that. It’s supposed to get easier with a degree – it’s only getting harder,” she said.

John-Christian Newkirk is a 2022 Barton graduate. He earned his Bachelors of Science degree in Biology.

As of now, he currently works as an EMT in Raleigh.

Newkirk said that he plans to go Medical school for his medical degree. 

According to Newkirk, inflation didn’t really phase him.

“Before graduation, my plans never changed. I had already planned to go back to living with my grandma; it’s cheaper. I don’t like people either so living with roommates would never work out. I’m trying to get into Duke, but the price for tuition is already a lot. I don’t want to add housing into the mix,” said Newkirk.

“Even with the job I have now, I couldn’t afford an apartment just yet anyway. We as graduate students are already low on funds from regular college because we’re paying off loans. I don’t even think graduates can afford their own housing now. So, it’s smarter to just live with family,” he said.

To ease the cost of housing, the Federal Housing Finance Administration have issued several programs.

According to Bahney, these programs include “down payment assistance, lower mortgage insurance premiums and a credit reporting system that factors in rent payment history.”

On top of those programs, President Biden had issued a Housing Supply Action Plan in early May.

“The plan aims to boost the supply of affordable housing by enhancing existing federal financing and incentivizing areas to reform zoning and land use policies to build more lower cost housing,” said Bahney. 

However, with a plan so hopeful, Bahney said that it will take time and will require Congressional action.

Reference:

Bahney, A. (2022). Why it’s getting even harder to keep a roof over your head. CNN: Business. https://www.cnn.com/2022/09/22/homes/housing-affordability

Photo by Jessica Simmons