While Donald Trump’s return to the White House has been met with anticipation by some, it’s unlikely to bring much relief to Americans struggling with the affordability crisis in the housing market. His policies, including increased tariffs and immigration restrictions, could lead to higher construction costs and potentially reduce the supply of homes. Conversely, efforts to loosen regulations and incentivize homebuilding could have positive effects on the market. However, the overall impact on housing affordability remains uncertain and depends on how Trump prioritizes these competing policies during his second term.
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The average age of homebuyers in the US has increased from 49 in 2023 to 56 in 2024, indicating that younger Americans are being priced out of the market due to high ownership costs. The National Association of Realtors’ report also reveals the median age of first-time buyers has gone up to 38, and their share among all buyers dropped to 24%, the lowest since tracking began in 1981. This trend is primarily attributed to rising homeownership costs, with median U.S. home price increasing by 39% to $435,000 since 2020 and the average 30-year fixed mortgage rate more than doubling to over 6% in the same period.
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The Federal Reserve’s recent significant cut in its key rate is making waves, not just in the economy but also in the minds of regular citizens like me. It signifies a shift in focus from fighting inflation to prioritizing economic growth, and the implications of this move are far-reaching.
The timing of this rate cut, just weeks before a pivotal presidential election, introduces an interesting dynamic. It could potentially influence economic conditions as Americans head to the polls, with varying interpretations from different political camps. However, the tangible impact comes in the form of lower borrowing costs for mortgages, auto loans, and credit cards.… Continue reading
The state of the housing market in America is dire. The cost of housing has skyrocketed to levels that are unsustainable for most Americans. Rents have surged, home prices have doubled, and the burden on families is tremendous. This housing crisis isn’t just a personal struggle; it’s a significant economic impediment. The nation is facing a shortage of affordable homes for both rent and sale. The current housing market favors the wealthy, leaving working families struggling to find suitable housing.
The root cause of this housing crisis is clear – there’s simply not enough affordable housing available. Developers are hesitant to build more affordable homes due to economic constraints.… Continue reading
I have always believed that companies are not people, and it is about time we stop treating them as such. Kamala Harris’s recent announcement to curb Wall Street’s homebuying spree is a much-needed step in the right direction. The fact that companies like Invitation Homes are monopolizing the housing market and negatively impacting renters is appalling. They are evicting tenants at alarming rates, increasing rents exponentially, and skimping on property maintenance while reaping huge profits.
The consequences of allowing Wall Street to own a significant portion of single-family rental properties are far-reaching. Not only are they exploiting millennials and families in need of affordable housing, but they are also distorting the market and undermining the American dream of homeownership.… Continue reading
Mortgage rates have jumped back over 7% as stronger economic data rolls in. This news comes as a surprise to many who were hopeful that the rates would continue their downward trend. The previous decrease in rates was largely speculative, with hopes that the Federal Reserve would cut the funds rate in March. However, with strong job data and the Fed suggesting the need for more patience, it makes sense that the rates have gone back up.
As someone who is currently in the market for a house, these rising rates are disheartening. The dream of homeownership is slowly slipping away as the interest rates become more and more unfavorable.… Continue reading
The record number of Americans who are homeless amid a nationwide surge in rent is a deeply concerning issue that I feel strongly about. As someone who works in homeless services, I have seen firsthand the devastating impact that skyrocketing rent prices can have on individuals and families. It is disheartening to witness the increasing number of people who are unable to afford a safe and stable place to live.
I am not surprised by the statistics that show a significant increase in homelessness, as I have seen this trend first-hand in my community. The rising cost of rent is simply not proportional to the increase in income, especially for those working in the service industry.… Continue reading
Last year’s home sales were the lowest since 1995. This headline paints a bleak picture for the housing market, and it’s a reality that many people, including myself, have experienced firsthand. The input content from various individuals highlights the reasons behind this decline in home sales and offers personal insights and opinions on the matter.
One of the key factors contributing to the low home sales is the high interest rates. As one commenter mentioned, unless interest rates drop or people accept them as the new norm, it’s unlikely that homeowners with low mortgage rates will consider selling their homes. This lack of inventory further drives up prices for the limited properties available.… Continue reading
John Q. Hosedrinker