New York Times: Housing Market Slows, as Rising Prices Outpace Wages

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New York Times: Housing Market Slows, as Rising Prices Outpace Wages

In an economy that works for everyone, working Americans should be able to afford housing at a reasonable price.

Unfortunately, that’s not possible in many cities across the country.

As housing prices rise and wages largely do not, many families are struggling to buy or rent homes at a cost they can afford. Sherrod knows we need a system where anyone can find somewhere to live at a cost that won’t put them in massive debt. If you agree, show your support for Sherrod now:

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New York Times: Housing Market Slows, as Rising Prices Outpace Wages

Ben Casselman – September 29, 2018

Key points:

  • Economists, real estate agents and home builders say the core issue across many American cities is the same: Home buyers are reaching a breaking point after years of breakneck price increases that far exceeded income gains.
  • Nationwide, sales of previously owned homes fell 1.5% in August from a year earlier, according to the National Association of Realtors.
  • Residential building permits were down 5.5% over the past year, according to the Department of Commerce.
  • Overall, the housing market is not behaving as the textbooks say it should. Inventories remain low despite the recent increases, and new construction is slowing, not picking up.
  • Many new homes being built in Denver, for example,will list for more than $400,000. And hardly any builders are selling properties for under $300,000 without government subsidies. Even many home builders worry they are pricing themselves out of the market.
  • To have a big impact, economists say cities have to build more homes affordable to middle-class families. That will require persuading communities accustomed to single-family homes to accept condos and townhomes.

Read more here.