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Unaffordable

March 1, 2024 | Posted in: Insights

I have written a number of blogs and white papers regarding the shortage of housing in the U.S. and the resulting challenges faced by potential home owners, particularly first-time buyers. In addition to the lack of supply, stiff competition including bidding wars, and high mortgage interest rates, would-be homeowners are faced with daunting prices. The following graph displays the price of the average home as a multiple of median household income. Note that it has risen from 3.5 in 1985 to 5.8 currently with a particularly steep increase since the onset of the pandemic.