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Yesterday marked a significant victory for veterans as they regained the ability to have a realtor represent them on buyer-side real estate transactions. The U.S. Department of Veterans Affairs (VA) issued a temporary fix allowing homebuyers using VA loans to pay for their real estate agent’s commission, also known as the buyer-broker fee. This change came as a result of the National Association of Realtors’ (NAR) commission lawsuit settlement agreement and was anticipated by Michelle Corridon, the deputy policy director at the VA.
The VA’s swift action in making this change is noteworthy, considering the agency’s history of slow-moving bureaucracy. It wasn’t long ago that the VA faced criticism for its lack of timely response to veterans dying in waiting rooms due to inadequate healthcare services. The fact that the VA acted so quickly to restore agent representation for veterans highlights the importance they place on this issue.
However, while this change is a step in the right direction, it raises a more pressing question: how many veterans or active-duty military personnel can actually afford to buy a home in today’s market? It’s like worrying about the menu at an exclusive restaurant that most people can’t even get a reservation at. The real issue that needs to be addressed is housing affordability for our nation’s heroes.
Looking at the inventory levels across the country, it’s clear that supply is down in nearly every state compared to 2019, with Texas being the sole exception. This scarcity of available homes, coupled with high demand, means that prices are unlikely to come down substantially enough for many veterans to afford homeownership.
To put this into perspective, a commissioned officer with 18 years of service earns approximately $6,100 per month, while an enlisted service member with the same tenure makes around $4,856 per month. With these income levels, it’s incredibly difficult, if not impossible, for them to purchase a home in the current market. The restoration of agent representation, while a nice gesture, is akin to polishing the china on the Titanic – it doesn’t address the core problem.
As someone married to a veteran, I can attest to the importance of affordable housing. We were fortunate enough to purchase our home in 2013, and its value has nearly doubled since then. If we were in the market for a home today, we simply couldn’t afford to buy our current house, especially considering the higher interest rates.
The mortgage industry is full of individuals and organizations that support veterans and specialize in VA loans, which is commendable. However, it’s time for the industry to expand its message beyond educating agents and lenders about veteran loans. We need to advocate for the ability of veterans to buy homes.
With the upcoming election cycle, we have a unique opportunity to capture the attention of candidates and push for affordable housing initiatives. As an industry, we should organize a campaign of veteran loan officer advocates to champion this cause, not just for veterans and active-duty military, but also for first responders. These individuals put their lives on the line to protect our country and our families, and they deserve the opportunity to own a home.
Meanwhile, deep-pocketed institutional investors like BlackRock are taking advantage of the limited inventory, further exacerbating the problem. It’s time for our industry to take a stand and send a clear message: affordable housing is a must, and we need to do it for those who serve and protect our nation.
I encourage you to take this message to your community and your realtor friends. Use it as an opportunity to ask for their business while advocating for a cause that matters. We have nothing to lose and everything to gain by pushing for affordable housing for our veterans, active-duty military, and first responders.
Let us know your thoughts in the comments below. Together, we can make a difference and ensure that those who sacrifice so much for our country have a fair chance at achieving the American dream of homeownership.
