The affordability crisis in the real estate market worsens as prices continue to climb and mortgage rates reach record levels, which puts at least least 4 million Americans.
This was revealed by the results of the Annual Report on the State of Housing, carried out by Harvard University and published this week.
The factors that the study finds have most affected the affordability of housing, at levels similar to those of 1987, and therefore away from buyers, are the record rise in mortgage rates and price increases in recent months.
“If you close the door on affordable home ownership, you will close some significant inequities in housing,” said Daniel T. McCue, senior research associate at the Joint Center for the Study of Housing, in a report published in CNN.
According to the researchers responsible for the report, the most recent data on the effect of the rise of the rates, which would be cooling down the high prices, have actually resulted in fewer families being able to buy a home.
The figures that the report shows clearly show the great difficulties that Americans find in the real estate market to fulfill the dream of buying a house.
If a house with an average value of $400.700 dollars, it should be taken into account that the associated expenses to the purchase process: mortgage, insurance payments and taxes, they cost $700 dollars more last April .
But not only that, people who are interested in applying to buy a house of this type will need $28,19 annual dollars more, to the ing resources that a year ago were needed to apply for the purchase.
To obtain this data, the Harvard Joint Center for Housing Studies analyzed information from Freddie Mac and the National Association of Realtors Real Estate.
A market that closed its doors
The opening that the real estate market showed before the covid pandemic-19 allowed generational buyers, such as millennials and black people, to finally have access to becoming homeowners.
However, dynamics generated during the pandemic, such as the rental of single-family homes that were converted into offices or the purchase of housing by investors in expanding markets, left these groups out.
The final blow was given by the jump in housing prices in March 2022, when they increased 20.6% in s u annual comparison, the largest rise in three decades.
In this upward movement, rental prices they also climbed to levels not seen in several years, even above wages.
With few options in the existing housing market, buyers turned to new home construction, hoping to find an opportunity.
However, the data collected for the study showed that most new homes that were built had a value of more than $400,000 dollars, which again left them out of the market.
This scenario reinforces the disparities in home ownership by race, since while the rate for black and Hispanic homeowner households is 45% to 49%, white families have a homeownership rate of 77%.
You may also like:
– Redfin and Compass announce agent layoffs due to high housing and mortgage prices
– Uber Pool returns as UberX Share: how this ride-sharing service will work
– Why in states with the cheapest gasoline prices affect the economy more than in others with higher prices