When Covid froze the economy, the Federal Reserve slashed rates to near zero and bought huge piles of bonds. Mortgage costs dropped to record lows, and millions of buyers rushed in with stimulus savings while the supply of homes stayed tight. Prices shot up much faster than wages, setting the stage for today’s affordability crunch. Thats the gist of It…

It now takes about $114,000 a year to qualify for the typical home, up from $67,000 in 2019. Paychecks did not grow nearly this fast, so many first time buyers are stuck renting.

The good thing is inventorybis growing in many parts of thr nation now. Builders are putting up smaller houses that cost less, and more new homes are coming onto the market each month. If mortgage rates slide closer to six percent next year, monthly payments will drop and bring more buyers back as well.

Cities can help by allowing townhomes, tiny homes, and other lower cost options, plus grants for down payments. These steps together can bring prices and paychecks closer again. Keep an eye out in your local area. Join the Conversation