Key facts
- The US housing market is facing a significant affordability crisis.
- Rising home prices are a major contributing factor.
- Increased mortgage rates further strain affordability.
- A shortage of housing supply continues to be a problem.
- Zoning regulations in many areas contribute to the supply issue.
The combination of elevated home prices and higher borrowing costs has pushed housing affordability to its lowest levels in decades. This is impacting demand and potentially leading to slower market activity, while also highlighting the long-standing issue of insufficient housing supply in many desirable areas.