Housing is more broken than most admit. Cutting rates won’t fix it. Prices remain too high and wages too low to afford a home. Inventory shortages in key regions make matters worse.
First-time buyers are pushing 40 years old on average. That shows how the market locks out younger generations. Albert Edwards, known for predicting the dot-com bubble, warns a crash may be near.
“U.S. housing market is showing clear signs of overheating that could lead to a significant downturn.”
https://www.businessinsider.com/stock-market-crash-famed-market-bear-warns-of-everything-bubble-2025-7
“The median age of first-time buyers is climbing as affordability worsens.”
https://www.nar.realtor/newsroom/first-time-home-buyers-shrink-to-historic-low-of-24-as-buyer-age-hits-record-high
Lowering rates may bring short-term relief but fundamental economic factors remain unchanged. Wage growth lags behind price inflation and new supply remains scarce. Builders and policymakers push narratives that serve their interests while ignoring how far the average family has fallen behind.