🇺🇸 US HOUSING AFFORDABILITY CRISIS DEEPENS
US housing affordability has now dropped below the levels seen during the 2008 financial crisis, signaling mounting pressure on middle-income households.
2005 Snapshot
Median Salary: $46,000
Median House Price: $184,000
2026 Snapshot
Median Salary: $59,000
Median House Price: $450,000
Wages have increased by only 28% over the past two decades.
Meanwhile, home prices have surged by nearly 150%.
This widening gap has pushed homeownership out of reach for a growing number of Americans.
At present, nearly 75% of US households are unable to afford a median-priced new home. A significant portion of potential buyers are effectively priced out of the market.
Mortgage rates continue to act as a major constraint. Despite recent rate cuts, 30-year mortgage rates remain in the mid-6% range — well above the 3%–4% levels that were common prior to 2022.
Housing supply shortages are compounding the issue. The United States faces a deficit of several million homes, while many existing homeowners are holding onto properties secured with historically low mortgage rates.
As a result, housing market activity has slowed considerably, and affordability metrics have deteriorated to their weakest levels on record.
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