US Housing Crisis 2023: 99% of Americans Priced Out of Homeownership

• Escalating US Housing Prices Out of Reach for Average Citizens
• Rising Property Prices in Previously Affordable Counties
• Mortgage Rates and Overpriced Rural Housing
• Understanding the Skyrocketing US Housing Market
• Effect of the Supply and Demand Dynamic on House Ownership

Escalating US Housing Prices Out of Reach for Average Citizens

Over the past four years, the cost of housing in the United States has soared, making home ownership a distant dream for the average American. As per recent reports, a staggering 99% of citizens are unable to afford housing anywhere across the nation. This also applies to rural counties and locales, often seen as more affordable due to their distance from central business districts.

Rising Property Prices in Previously Affordable Counties

Reports indicate that 575 US counties, previously considered affordable, have now seen a significant surge in property prices post the pandemic. An individual earning an average income of $71,214 annually is now unable to afford housing, even in the remotest areas of the country. This issue is not limited to average earners; even those with a high annual income of $407,100 find it challenging to own a house, whether in urban cities or rural areas.

Mortgage Rates and Overpriced Rural Housing

The climbing mortgage rates, which crossed 7% in 2023, are a contributing factor to the reluctance towards home ownership. Additionally, home sellers and real estate developers are demanding excessively high prices for basic housing options in rural areas.

Understanding the Skyrocketing US Housing Market

The pandemic has resulted in a significant decrease in homeowners willing to sell their properties, leading to a dramatic increase in housing prices. This situation is caused by an imbalance in the supply and demand dynamics of the property market.

Effect of the Supply and Demand Dynamic on House Ownership

The unfavorable supply and demand conditions for housing are becoming increasingly detrimental for Americans. As Daryl Fairweather, Chief Economist of Redfin, explained, currently, only those with an urgent need to relocate due to life events such as marriage or job change are selling their homes. This lack of new inventory is maintaining the high property prices, further inflating the housing market.

Edited by Jonathan Stoker