The Squeeze: Skyrocketing House Prices Leave Middle-Class Buyers Struggling

Housing costs now make up almost 40% of the average household income, a sharp increase from previous years. Factors such as low housing inventory, increased demand due to low interest rates during the pandemic, and the shift to remote work have contributed to the rising cost of housing. The Home Ownership Affordability Monitor (HOAM) index shows that homeownership affordability is near all-time lows, with the median home price accounting for a significant portion of household income. To afford a home in the current market, individuals should analyze their finances, research loan options, save for a down payment, and work with a knowledgeable real estate agent. Saving money on a mortgage can also be achieved by comparing rates, putting down a larger down payment, and shopping around for homeowners insurance. Despite the challenges, homeownership can still be attainable with proper planning and preparation.