Buying a House Getting Further Out of Reach for Many
The US real estate market is facing a crisis as rising interest rates, inflation, and the possibility of a recession are causing home prices to skyrocket. The demand for houses is far surpassing the available supply, making buying a house in the US extremely expensive.
- The average cost of buying a house in the US has reached a new all-time high of $2,748 per month, representing a 90% increase since 2020.
- On an annual scale, Americans need to spend nearly $33,000 to pay for the house they buy, which is 46% of the median annual pre-tax income.
- The median monthly cost for a rented apartment has also reached a new all-time high of $1,859, totaling just over $22,000 annually.
- The high prices are attributed to the monetary policy of the US central bank and the current record-high mortgage rates, as well as the increasing credit card debt and inflationary pressures.
- There are currently more registered realtors in the US market than there are available single-family homes, indicating a shrinking supply and increasing demand.
With the continued rise in interest rates and the lack of supply, buying a house in the US is becoming increasingly out of reach for many. The real estate market is facing a crisis that could further worsen the affordability of housing and contribute to a looming recession.
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