The cost of housing in the United States has reached an all-time high, with Americans now needing to make $114,600 per year to afford a median-priced home — To put things in perspective, the median household income is only $75,000.

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by TonyLiberty

The cost of housing in the United States has reached an all-time high, with Americans now needing to make $114,600 per year to afford the median-priced home. To put things in perspective, the median household income is only $75,000.

Homeownership is becoming increasingly out of reach for many Americans. If you’re looking to buy a home, a compromise on space or location may be necessary.

See also  Rate cuts won't prevent a 2008-style housing correction if affordability collapses—Econ 101.

Many may have to rent forever instead of building equity. Wealth inequality will deepen as property ownership concentrates among the wealthy. In the long term, the rising cost of housing could lead to a number of problems, including:

• Increased poverty

• Increased homelessness

• A decline in the quality of life for many Americans

What impact do you think this will have on the housing market and the economy as a whole?

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