
Renters Struggle with Competing Costs of Food, Energy, and Housing – Harvard JCHS
“Home prices jumped during the pandemic as more Americans, many of whom were newly remote workers, rushed to find homes offering extra space. Then, the Federal Reserve’s war on inflation caused mortgage rates to surge. In 2024, prospective homebuyers face an unpleasant combination of high prices and high borrowing costs.
“All of this has added up to one of the most unaffordable housing markets in a generation, causing many young Americans to remain renters for longer than many would like. The median age of a first-time homebuyer was 35 last year, a year older than in 2019, according to Zillow.
“The median price of a previously owned home in the US rose to $426,900 in June, the second consecutive month that prices reached a fresh record high based on data going back to 1999, according to the National Association of Realtors. In many cities, that median price is much higher.
“To further complicate things for first-time buyers, the value of starter homes has grown at a faster pace than the average home. According to Zillow, starter home values have grown 54.1% over the past five years, while the average US home has increased by 49.1%.“
A $1 million starter home is now the norm in more than 200 US cities – CNN