Students across America are struggling with rising rent prices, some spending more on housing than tuition, and Wichita State students are no exception.
“Student housing has become extremely expensive,” Madeline Pfundstein, a creative writing major, said. “Apartments close to campus are too expensive for what you get and any place that is affordable is in a dangerous part of the city.”
Despite rising rent and struggles to afford housing, the most recent housing forecast could alleviate some of future worries. WSU’s Center for Real Estate housing forecast presents a hopeful outlook for next year’s market.
According to the forecast, while prices are still rising in Wichita, data indicates that the market could level out. It also predicts that Kansas will return to the “old normal,” before the 2008 financial crisis.
If home prices do so, there is hope for rent prices to follow suit.
Stanley Longhofer is the director of WSU’s Center for Real Estate. He was largely in charge of compiling and conducting the study’s research.
Longhofer said mortgage rates are settling into ideal rates of low interest and steady appreciation, meaning houses will gain value over time.
“We have seen mortgage rates come back down to about 6% (for 30-year fixed rates) … and I think that is actually a range we should expect to see as reasonable.”
The 6% is slightly below the nation’s average, around 7%.
Longhofer said market conditions have become more balanced between buyers and sellers, where previously, buyers were left with few options and high prices
“It’s reasonable for us to expect mortgages (to be in an affordable range), in a world where we have low inflation, solid economic growth, and nothing strange going on in the financial markets,” Longhofer said. “We’re right in the sweet spot of that.”
And some WSU students said they are optimistic about the market, with some saying they’re confident they could eventually purchase a Wichita home.
“I think people think (the nationwide housing market) is worse than it is in Wichita,” Lauren Giroux, a mechanical engineering student, said. “In other places, yes it’s bad, but here it’s leveled out more recently.”
When looking at cities with similar population sizes, Wichita homes have the best price range.
In Omaha, Nebraska, the median home price is $270,000. In Tulsa, Oklahoma, homes cost around $238,000.
Meanwhile, in Wichita, the median price is $227,500.
For people like Peter Porcaro, though, these stats fail to distract from a harsh reality many face.
Porcaro, a mechanical engineering student, has first-hand experience trying to buy a home. He saved up for a down payment and received preapproval for a loan.
But when it came time to make an offer, he was quickly outbid each time.
“When a house needs $50k in repairs and still goes for $50-75k above asking, I’m not sure I’d ever be able to afford one,” Porcaro said “It’s ridiculous (that) housing, an essential resource for survival, is speculated upon and seen as something to exploit for profit. My life is worth more than the profits from any real estate endeavor, as is everyone else’s.”
There are also students, like Pfundstein, who are still struggling to find safe, affordable places to rent, let alone find and purchase a home.
Students can’t solve the housing crisis, but there are ways to alleviate their situations.
Longhofer suggested people pursuing homeownership try an adjustable-rate mortgage, which is often a lower interest rate than other mortgages. He also advised younger people to not compare themselves to older homeowners.
“The thought that you’re going to have this really beautiful, pristine home your parents had in high school (is incorrect),” he said “It takes some time to get there.”
This article was republished here with the permission of: The Sunflower