What's Happening?
Kelly Beigle and Boris Krstevski, a couple living in Washington, D.C., decided to purchase an apartment in Italy instead of buying a home in the U.S. due to the high costs associated with the American
housing market. Despite their financial success, they were deterred by the prospect of a 30-year mortgage and substantial monthly payments. The median home price in Washington, D.C. is $685,000, which contributed to their decision to look abroad. They initially considered Portugal but ultimately settled on a property in northern Italy, which they could afford outright with their savings. The couple purchased a 1,356 square foot apartment for approximately $107,063, including renovations. This decision allows them to split their time between Europe and the U.S., closer to Krstevski's family in Serbia.
Why It's Important?
This story highlights the challenges faced by potential homebuyers in the U.S., where high property prices and mortgage rates can deter even financially successful individuals from purchasing homes. The couple's decision to buy abroad reflects a growing trend among Americans seeking more affordable housing options outside the U.S. This trend could impact the U.S. housing market by reducing demand, potentially leading to price adjustments. Additionally, it underscores the appeal of international real estate markets, which may offer more favorable conditions for buyers. The couple's experience also illustrates the broader economic implications of housing affordability and the choices individuals make in response to market conditions.
