Salaries grew just 27% while home prices grew by over 90%!!! WTF is going on??

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The affordability crisis is driving unprecedented price cuts in the housing market, Realtor.com says

The housing affordability crisis is forcing homebuilders to do something they’ve almost never done: slash prices on new homes more aggressively than homeowners are for their homes on the market. This is a first for the housing market in recent history, according to a Realtor.com report released Thursday.

“The current housing market is entrenched in an affordability crisis, leaving many average American families feeling excluded from the traditional promise of upward mobility and homeownership,” said Stuart Miller, CEO of Fortune 500 homebuilder Lennar, during a December earnings call. Lennar’s average sales price dropped 10% year over year to $386,000 in Q4 2025, according to its earnings report.

During the fourth quarter of 2025, nearly 20% of new homes faced a price cut, the Realtor.com report shows, and existing home price reductions trail at about 18%. This shift suggests we’re entering a buyer’s market, Realtor.com says, as home prices drop.