Fastest Declining US Housing Markets (1-Year Drop):
1. Austin, TX: -11.6%
2. Boise, ID: -8.6%
3. New Orleans, LA: -8.0%
4. Lake Charles, LA: -8.0%
5. Phoenix, AZ: -7.0%
6. Las Vegas, NV: -7.0%
7. Provo, UT: -6.7%
8. Reno, NV: -5.7%
9. Chico, CA: -5.7%
10. San Jose, CA: -5.5%…— The Kobeissi Letter (@KobeissiLetter) October 22, 2023
As mortgage rates hit 8% for the first time in 23 years, affordability continues to fall off a cliff.
The Housing Affordability Index just hit a fresh record low, at ~90.
This means that housing affordability is officially down 50% since 2021.
Since then peak in 2012, housing… pic.twitter.com/8LrplZtztq
— The Kobeissi Letter (@KobeissiLetter) October 23, 2023
The other issue is that rent has become just as expensive.
The median asking rent is now nearly $23,000/year for a single family home.
You can either pay a lot to rent or pay even more to buy.
Truly a crisis.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) October 22, 2023
— Darth Powell (@VladTheInflator) October 23, 2023