The housing market is experiencing challenges, with expensive homes selling well but homes below $750,000 struggling. High interest rates are making mortgages more expensive, and low inventory is also contributing to affordability problems. Rents have also increased significantly. While some areas are seeing continued price growth, others are experiencing declines. Until inventory improves and interest rates stabilize, buying a home will remain a challenge for many.
New home construction has taken a surprising nosedive, raising concerns about the housing market's health. While the rental market remains strong, the supply of new homes is slowing down, making it harder for buyers to find affordable homes. Despite this, the Federal Reserve is keeping an eye on the housing market as they consider interest rate decisions. The economy is showing mixed signs, so it's important to monitor trends over a period of time to get a clearer picture.
The housing market is slowing down, but compared to last year, homes and rent are still much more expensive. San Jose, California is the most expensive rental market, while Miami is the least affordable. For rent below the national average, consider cities like Oklahoma City or Birmingham.
The rental market is becoming competitive as spring approaches, with rent prices rising nationwide. Potential renters should research different types of properties available, including traditional rental buildings, condos, and housing cooperatives. While rental buildings may have lower upfront fees and be subject to rent regulations, condos and co-ops often have high fees and restrictions on renting. Co-ops, in particular, have a more rigorous application process and may have rules limiting how long a renter can live in the unit.
