Americans are living through the toughest housing market in a generation and, for some young people, the quintessential dream of owning a home is slipping away.
Mortgage rates surged in recent years, hitting the highest levels in more than two decades last fall. While rates have come down slightly since then, home prices remain painfully elevated and a limited inventory of housing is still failing to keep up with demand. Such conditions mean that housing has become woefully unaffordable.
Falling mortgage rates in recent weeks have helped, but home prices could remain sticky, according to economists. It’s still a cruddy time to be hunting for a home, but it’s even worse for young, first-time buyers who need to save up for a down payment and build up their credit score during a time when Baby Boomers are refusing to part with their big houses.
The situation isn’t a whole lot better for renters, with rents barely coming down from record highs and half of tenants in that market saying they can’t even afford their payments.
The uneasiness over America’s affordability crisis is captured clearly in surveys and polls, but data that outlines the sentiment specifically among young people is limited.
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Um, dumb question: I thought they only built very, very low-income homes. Which is fine, but as bad as the housing market is, I don’t want to take a house out from under a needy family, for example. I’ll survive, I always do…
Just looking at my local housing market, low income is where the housing is needed most. but what that means in dollar figures differs from area to area. Where I am, if you’re making $70k+ there are plenty of houses on the market you can afford (figuring a 2 to 4 times gross wages budget), but the median income in Alabama was something like $35k last I looked. Not much available those folks can afford.