The US housing market is so expensive that incomes would have to spike 55% for it to be considered affordable

11/11/2023

The US housing market is so expensive that incomes would have to spike 55% for it to be considered affordable

According to Andy Walden, ICE Vice President of Enterprise Research, the current housing market is facing a significant challenge to return to pre-pandemic affordability.

He outlined three extreme scenarios that would need to occur, including a 35% correction in prices, a 4% decline in interest rates, or a 55% growth in incomes.

However, Walden emphasized that these factors are unlikely to happen in isolation. The housing market, despite facing potential movement, is being impacted by a lack of inventory, keeping prices elevated even as rates rise.

Affordability has been further squeezed by higher mortgage rates and soaring home prices, with rates on the 30-year fixed mortgage nearing two-decade highs. The challenges in the housing market have led to a decline in demand, reaching its lowest point in the last three weeks, impacting affordability at its lowest level in 40 years.

Walden noted that the interest rate effect is not only reducing demand but also pulling down supply, causing gridlock in the market.

Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.

Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.

The Blubber

Trump has told Walmart, $WMT, to 'eat the tariffs' instead of raising prices

Moody’s downgrades US credit rating to Aa1 from Aaa

YouTube, GOOGL, viewers will start seeing ads after ‘peak’ moments in videos

CEOs say that just a fraction of AI initiatives are actually delivering the return on investment they expected

Stay Updated