US Housing: 99% Of Americans Cannot Afford To Buy a House in 2023
The US housing is now beyond reach for the average American as prices have skyrocketed in the last four years. According to a new report, 99% of Americans cannot afford to buy a house anywhere in the country. This includes even smaller counties and places that are far from the CBD areas. Data shows that prices of 575 US counties which were cheaper before have now become unaffordable after the pandemic.
An average earner who makes $71,214 per year is not in a position to buy a house even in the most remote areas in the country. Even people making $407,100 a year are finding it difficult to own a house in both the cities and the countryside. The mortgage rates climbing above 7% in 2023 is also the cause to back off from owning a house. In addition, home sellers and real estate builders are charging exorbitant prices for basic housing in the countryside.
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Homes “unaffordable” in 99% of nation for average American
The typical American cannot afford to buy a home in a growing number of communities across the nation, according to common lending standards.
That’s the main takeaway from a new report from real estate data provider ATTOM. Researchers examined the median home prices last year for roughly 575 U.S. counties and found that home prices in 99% of those areas are beyond the reach of the average income earner, who makes $71,214 a year, according to ATTOM.
Housing experts point to couple trends driving up housing costs. Mortgage rates have topped 7%, adding hundreds of dollars per month to a potential house payment. At the same time, homeowners who locked in at lower mortgage rates during the pandemic have opted not to sell out of fear of having to buy another property at today’s elevated rates, depleting the supply of homes for sale.
“The only people who are selling right now are people who really need to move because of a life event — divorce, marriage, new baby, new job, etc.,” Daryl Fairweather, chief economist of Redfin, told CBS MoneyWatch. “That lack of new inventory is keeping prices high.”
As of August, the national median existing home price was $407,100, up 3.9% from a year ago, according to the National Association of Realtors. The average interest rate on a 30-year home loan was 7.19%, up from 6.48% at the beginning of 2023, according to Freddie Mac. Prices will remain unaffordable as long as mortgage rates continue to rise, Fairweather said.
“The dynamics influencing the U.S. housing market appear to continuously work against everyday Americans, potentially to the point where they could start to have a significant impact on home prices,” ATTOM CEO Rob Barber said in a statement Thursday. “We will see how this shakes out as the peak 2023 buying season winds down.”
www.cbsnews.com/news/homes-for-sale-affordable-housing-prices/