This is Prime Time for House Hacking

[Victor Steffen]

An interesting thought from a meetup we attended last night in Austin- this is a prime season for househackers.

Sellers are spooked and the number of offers per listing are down. 

Interest rates at 6 and 7% mean PITI payments are approx 40% higher than when rates were in the 3s. That's a big pill to swallow for most buyers especially owner-occupants using low down payment financing and carrying the debt service on their own.

Househackers are uniquely equipped to thrive in the coming months because the additional income from leased units/ rooms allows us to comfortably swallow the additional interest and we're finally seeing sellers agree to concessions and contracts with contingencies in-place which are essential to protect earnest money deposits (which for many househackers represents the bulk of their cash holdings).

Curious to see how this shakes out over the next several months!