Posted on 08/30/2024 9:30:33 AM PDT by SeekAndFind
Housing affordability in the United States has taken a sharp turn for the worse in recent years, as house prices surged to historical highs during and after the pandemic and mortgage rates have risen steeply over the past three years, as the Fed tried to rein in inflation.
It all began with a surge in demand for houses during the Covid-19 pandemic, when many Americans, flush with cash from government stimulus checks, reevaluated their living situation and sought more space amid stay-at-home orders and the sudden possibility of remote work. Further fueling demand were the historically low mortgage rates after the Fed had slashed interest rates to near zero at the onset of the pandemic.
At the same time, supply of new and existing homes was very constrained, as construction was disrupted by Covid restrictions and would-be sellers refrained from putting their house on the market during this uncertain time. This imbalance caused a rapid increase in home prices across the country, pushing many potential buyers out of the market, a trend that was exacerbated when the Fed started to tighten its policy stance in March 2022 in its efforts to cool inflation.
As Statista's Felix Richter shows in the chart below, according to data compiled by the National Association of Realtors, buying an average home is now out of reach for the majority of Americans, as the annual household income needed to afford a median-priced home without too much financial strain has shot up 60 percent since January 2022.
You will find more infographics at Statista
Back then, the minimum income to buy a mid-range house – around $380,000 at the time – was $74,000, roughly in line with the national median income.
Since then a massive affordability gap has opened up, as a required income of $120,000 stands opposite a median income of around $84,000 – more than 40 percent shy of what would be needed.
Are they counting illegal aliens.
I’d gonna take a lot more than 4 years.
Container housing. Lots of containers out there. Welders can be taught the trade in prison. Get rid of the immigrants. Latins are not amongst the homeless like whites and blacks who are being crowded out.
look at nyc. lots of homes that were single family in the 1920's are carved into 10 or 20 apartments today.
more and more single family homes around here (FL) have 4+ vehicles parked in front of them at the end of the day.
Graphic is rough idea, for those who are inclined to quibble.
Majority Of Americans Can No Longer Afford An Average House
~~~
Probably still a Majority of Americans, but I Think a more accurate headline would be “first time home buyers’.
There is a significant portion of Americans who already have at least some equity in a current home, and could use its sale toward a new one, lowering the monthly payment on the new purchase and thus lowering the income requirement to stay under 30%.
How about a starter home first. So sick of entitlement with this group who want a McMansion out the gate. Screw them.
It’s because Blackrock is buying homes to rent for the new illegals.
So........that should self-right the ship. Leave it the eff-alone.
Once our kids were out and colleges were paid for, we lived five minutes from our jobs. A nice way to wind down our careers, mentor the best follow-ups, and enjoy life.
Houses are easily over ten fold in just the past couple years where I am. You will own nothing and like it. Or not. Now shut up and eat your bugs.
It is no wonder the marxist democrats are salivating over the “unearned” income taxes.
RE: Blackrock is buying homes to rent for the new illegals.
And who’s paying Blackrock the rent?
That’s exactly what the azhos in the Biden/Harris/Tiny Tim Tampon/Obonzo administration want.
Manufactured housing is becoming more and more attractive unless you live in tornado./hurricane areas of the country.
It seems like all the rest who CAN afford a new home are moving here. I haven’t seen so many new home builds here in 22 years!
This country is turning into a video to the Alan Jackson Song Rember When.
File that away under #Remember When.
No asylum claims, put troops on the border.
Anything less than this will destroy our country in the next decade or two.
You will own NOTHING and you WILL be happy.
The destruction of the Middle Class is proceeding on schedule. Start the gun confiscation band wagon. All you low information voters believe what Cowbeller says and vote her into the White House and the takeover will be complete.
Years ago, when I had a mortgage, the monthly payments INCLUDING TAXES AND INSURANCE were around $1,300 per month.
Now, the taxes and insurance alone are over $1,000 per month.
The assessed value keeps increasing, driving up everything except our standard of living.
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