- ORIGINAL NEWS
Home prices rose 2.4 times faster than inflation since 1960s, study finds. What that means for homebuyers
- SUMMARY
If home prices had increased at the same rate as inflation since 1963, a typical house in the US would cost around $177,511 today.
However, the median price for a home in the US is currently close to half a million dollars at $412,778.
This means that home prices have risen significantly faster than inflation, indicating a major affordability crisis in the housing market.
The factors contributing to this include supply and demand imbalances, zoning restrictions, and high land costs.
The high cost of housing is having a negative impact on the economy, with over half of US homeowners and renters stating that housing affordability is influencing their voting decisions.
As a result, the government is taking steps to address the issue, including initiatives to increase housing supply and provide tax credits to first-time homebuyers.
Efforts are also underway to expand access to affordable financing for manufactured homes, which offer a viable option during this period of low affordability.
However, housing experts emphasize the need for long-term solutions, such as reforming land-use regulations and addressing supply constraints, to create a more equitable housing market for all Americans.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“Biden also called on Congress to pass a mortgage relief credit that would provide a $10,000 tax credit for first-time homebuyers and a similar tax credit of up to $10,000 to families selling their starter home.”
““Manufactured homes in this time of historical lack of affordability are a real option for many households,” said Susan M. Wachter, a professor of real estate and finance at The Wharton School of the University of Pennsylvania.”
Negative
“The median price for a home in the U.S. is $412,778, according to Redfin data.”
“While inflation is 10 times higher now than 60 years ago, home prices are 24 times more expensive, a new study found.”