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!

[Scott E.]

While I agree that there will be opportunities for buyers that lie ahead, you can't look at a house hack with the mindset of "I can't afford this house anymore due to rates going up, but as long as I get roommates or fill the adjacent unit I can afford it!"

If you're buying a house as your primary residence, you should be able to afford that payment on your own (and a bank will look at it this way as well). The house hacking income is just a bonus.