Stuck in the '80s: The U.S. Housing Market's Time Warp

The U.S. housing market is experiencing a situation reminiscent of the 1980s as rising interest rates have not led to a decline in home prices. The market is facing critically low supply due to a decade of underbuilding, and homeowners who refinanced at low rates are reluctant to sell. Median home prices remain high at $416,000, and until the supply gap is filled by new construction, prices are unlikely to decline significantly. However, consumers may face more pressure in the coming months with the resumption of student loan payments and the possibility of high interest rates.