So basically anyone who bought a new house with 20% equity during the pandemic has lost almost his entire investment since then.
Chart @MacroMicroMe pic.twitter.com/unu8ISFeXd
— Michael A. Arouet (@MichaelAArouet) March 26, 2024
Imagine this: You finally take the plunge into homeownership, pouring your heart, soul, and a hefty 20% down payment into your dream home. You envision barbecues in the backyard and cozy movie nights in the living room. But fast forward to today, and that dream has turned into a financial rollercoaster ride, with your hard-earned equity vanishing faster than you can say “foreclosure.”
It’s a scenario that many homeowners are facing in today’s topsy-turvy housing market. With the pandemic-induced housing frenzy now cooling off, those who bought during the peak are left with a sinking feeling as their once-prized investment loses its luster.
But it’s not just about the money—it’s about the stark reality of affordability. The typical American home now demands a whopping $114,000 salary just to enter the game, leaving many hardworking families out in the cold.
As we navigate these choppy waters, it’s clear that the American Dream is starting to feel more like a pipe dream for many. With soaring prices and stagnant incomes, the path to homeownership seems steeper than ever before.
But amidst the chaos, there’s hope. By shining a light on the challenges we face and rallying together to find solutions, we can ensure that the dream of homeownership remains within reach for all who dare to dream.
"Buyers need to earn $114,000 to afford the typical U.S. home—35% more than the typical household makes."@Redfin pic.twitter.com/cuZUik6NAq
— Daily Chartbook (@dailychartbook) March 26, 2024
44% of Americans can't pay an unexpected $1,000 expense from savings, per CNBC.
— unusual_whales (@unusual_whales) March 26, 2024