Ingram's October 2023

20 in Their Twenties

Home Ownership Richard Chaves is in a house—as a renter. “I think the market is inflated. Homes that were $500k in 2020 are $750-$800k today,” he said. “It’s hard to justify that value.” He plans to rent for the next year or two and continue to watch the market for the right opportunity. Rosie Hollis is a renter, and may be for a spell. She’s concerned affordability in a market where homes sell, above asking price, often within a week. Rising inter est rates, as well, make it hard to afford a home in this area she says. Thus, “it makes it more appealing for 20’s to rent longer and move around more.” On top of that, “the finances needed to maintain or improve a home add to making buying a house less appealing and not affordable.” Jenna TeKolste says she’s looking to buy a home, but is wary of interest rates and where prices might yet go. Even if she does take the leap, she says, “I do genu inely believe that over the next decade, Kansas City will continue to attract young adults looking for a fun, engaging place to live. So, I am less concerned about the future resale value of the home I do end up buying.” Kamillia Scott, who has bought, moved and bought again since 2021, says buyers must determine whether the dream of homeownership is more important than getting the best rate or price. “I personally could never go back to having a landlord and neighbors above me, below me, etc.,” she says. And though higher rates leave a mark, “I know I made the right move be cause I love every inch of my house and never want to leave,” she says. “Plus, I can refinance when the time is right. Rates come and go. Peace is priceless.” The pandemic, said Zach Fischer, “highlighted the critical importance of homes for everyone.” Construction of entry-level priced homes has dropped steeply, he noted, and existing owners

refinanced during the low-rate era, so “I don’t expect many of those people to be putting their house on the market any time soon.” Lakyn Boltz takes a pragmatic ap proach to the challenge: “Regardless of when interest rates are predicted to drop, no home will be at any lower price point as it is right now if you wait to buy,” she said. “Even though interest rates may drop, the home value is just going to con tinue to increase. Does the market really ever provide the ‘perfect’ time to buy?” If there’s a Golden Child of home ownership in this group, it might be Luke Eckley, who bought his house in what he calls the “perfect time:” September 2019. “Home values had not gone through the roof yet and my interest rate was in the 2’s,” he said. But there’s a business aspect to what’s going on in this regard. “I employ a lot of Gen Z and Mil lennial generation folks at Apollo and I know that it’s a completely different market now when it comes to owning a home,” Eckley said. “I do think that in terest rates need to come down a couple of points to get people willing to move again, however, I do not think we will have interest rates in the 2’s again.” Those around the table generally ex pect that high mortgage interest rates and high prices will continue to spawn more apartment buildings and more rentals, even in single-family homes. More to Come Those are just a few of the discussion points covered by this thoughtful group. If you’d like to know more about early career life in Kansas City, you’ll be able to follow their discussion in depth though in upcoming Ingram’s Education & The Workforce newsletters. If you’re not al ready subscribed to those, you can do so by emailing Digital@Ingrams.com.

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1. Luke Eckley said the impact of high interest rates and low housing inventory was adding stress to the lives of employers at his insurance brokerage. | 2. Rosie Hollis says the costs of maintaining a home, on top of mortgage and inflated prices, will continue to further discourage young buyers and drive demand for apartment living. | 3. Because many owners have locked in low interest rates pre-pandemic, Zach Fischer believes more homes will be withheld from the market, further tighten ing supply. | 4. Members of this year’s class sounded off on a range of topics, including workplace dynamics, home ownership, the emergence of artificial intelligence and more.

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20 i n t h e i r twe n t i e s

2023

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