The Dream is Fading
The housing market is currently the toughest it has been in a generation.
- This means that many young people are finding it difficult to achieve their dream of owning a home.
A perfect storm of low inventory + higher interest rates + high prices have made housing very unaffordable for the average American.
Based on data from Zillow, it is currently taking the average homebuyer about nine years to save up for the median down payment on a home with the median value in the United States.
The 2023 median home sale price was $389,800, according to NAR, up about 1% from 2022 and the highest on record.
According to Redfin, the sustainable solution to improving affordability is to build more housing units - beyond interest rates dropping.
"That way we can actually start heading in the right direction with affordability and have that be sustainable and not just a short-term interest rate phenomenon," Redfin's chief economist said.
Even renters are feeling the burn: Rent prices have barely come down from record highs and half of tenants said they can’t even afford their payments.
Mom, I'm home! As a result, many younger Americans are moving back in with their parents. More than 50% of U.S. adults between ages 18 and 24 lived with their parents in 2023.