According to Felix Richter's article, the American housing market has become increasingly out of reach for many. Over the past few years, home prices have surged while mortgage rates have skyrocketed, making it difficult for most Americans to afford a house. The surge in demand for homes during the pandemic, combined with historically low mortgage rates and limited supply due to construction slowdowns, drove prices to record highs. However, once the Federal Reserve started raising interest rates in 2022 to combat inflation, affordability took a sharp downturn.
The numbers paint a challenging picture. In January 2022, the income required to afford a median-priced home was $74,000, which was aligned with the national median income. Today, that required income has jumped 60%, now sitting at $120,000, while the median household income lags behind at $84,000. This growing affordability gap has made it harder than ever for the average American to buy a home.
If you're feeling the effects of rising home prices but are still looking to buy or sell in Florida, I can guide you through this challenging market. Whether you're upgrading, downsizing, or selling, I'm here to help you find the best options. Contact me today to explore your opportunities! Call (561) 213-0202 or Click Here.