For many, the dream of homeownership is over. Maybe forever.
Record-high home prices combined with surging mortgage rates have made the dream of home ownership the stuff of pure fantasy. Home prices increased 5.9% year over year in May, slightly down from 6.4% the previous month. The S&P CoreLogic Case-Shiller index showed that home prices rose in 20 major metro markets.
A recent analysis found that fewer than 1 in 5 adult Gen Zers (18%) own a home or are married to someone who does, as reported by The Dallas Express. The latest Census Bureau data shows that over half of U.S. adult men and women under 25 lived in their parents’ homes in 2022, an increase compared to prior decades. About 57% of men and 55% of women ages 18-24 lived in their parents’ homes compared with 52% of men and 35% of women in that age group in 1960. Married-couple households are also down from 71% in 1970 to 47% of all households in 2022.
The income required to afford a home has nearly doubled in the last four years.
Fox Business reports on how mortgage payments are soaring in swing states and may influence who wins the election. Here’s the start of the story:
The housing affordability crisis is hitting swing states hard. These battleground states, which could potentially be won by either candidate, are especially focused on the issue of affordability in the upcoming election. About nine in 10 adult Gen Zers reported housing affordability is important when deciding who to vote for, Realtor.com found.
Housing payments in swing states have nearly doubled since the last election, rising by 92% to $2,161, on average. Rising home prices and mortgage rates have largely contributed to this jump in ownership costs. The average sales price in swing states increased by about 40% since 2020, and now sits at just over $316,000 in 2024. Mortgage rates have more than doubled to about 7% since the beginning of 2021, when they were 2.65%, on average.
Both red and blue states have faced similar fates, but red states have fared slightly worse, with median housing payments rising by 95%. Blue states saw an increase of 83% in average mortgage payments, according to Realtor.com.
These increases in housing costs have made it impossible for many residents in swing states to afford an average-priced home, based on the general rule that households shouldn’t spend more than 30% of their income on housing costs.