Americans Are On The Brink Of Eviction and Can't Afford Home Prices

in a time of economic uncertainty where housing prices are skyrocketing and wages are stagnant for many young adults in America purchasing a home is becoming increasingly Out Of Reach as rental prices continue to rise more and more people are moving into multi-generational households or facing eviction but the inability to afford a home has far-reaching consequences including impacting fertility rates and making it difficult for some to start a family let's explore why Americans are on the brink of eviction and what this means for their future are you struggling to afford a home you're not alone find out why more and more Americans are finding themselves unable to purchase a home and what it means for their Futures stay tuned and let's get started for many Americans buying a house is becoming an increasingly insurmountable goal with prices rising at an unprecedented rate and mortgage rates doubling in recent years potential homeowners are finding it difficult to afford their dream homes as a result countless people have been forced to put off purchasing and renting has become the only feasible option for many families High Cost of home ownership is having a ripple effect on the lives of Americans across the country in an effort to make ends meet many are moving in with family members or delaying having children until they can afford their own place it's a difficult situation for countless aspiring homeowners and one that paints a bleak outlook for the future of the housing market the issue is particularly pronounced for young people who are finding it increasingly difficult to purchase a house of their own in fact home ownership levels among this demographic have dropped to levels not seen since the early 2000s with prices so high in mortgage rates so volatile it doesn't appear as if the situation will improve anytime soon a level of exorbitants not seen since the housing bubble crisis in October 2022 more than 46 percent of median homeowner income had to be spent on annual home payments in order to keep up with Rising rents and mortgage rates a record high that surpasses even the 42 percent seen after the housing bubble crisis of 2006. this reign of exorbitants has not been seen since then putting many Americans who were hoping to purchase a home at risk of eviction as they can't afford home prices anymore and it's not just first-time buyers feeling the pinch even those with established credit scores and down payments are being pushed out of the market the problem is twofold not only did the pandemic cause his spike in housing demand that far exceeded Supply but interest rates which were already low decreased further as the FED responded to inflation by raising them this means that mortgage payments have become increasingly expensive for prospective buyers making it harder and harder to afford homes the situation has been exacerbated by the fact that rents have also been on the rise across the country leaving renters with fewer options in terms of affordable housing with more people competing for a limited number of properties rents continue to be unaffordable particularly for low-income earners and home prices have skyrocketed as a result as of January 27th less than six percent of rental units were sitting fake into the U.S rental market and along with demand rent prices are still at historic highs despite recent declines seen around the country that range from two to six percent in fact one new study found that expensive rental costs are now burdening 44 million Americans from all over the nation for the bottom 10 percent of income earners rents are unaffordable in virtually every state of the country the only viable solution appears to be for Americans to move to more affordable markets like Atlanta Nashville Charlotte and Boise but even with these low-cost options it's unclear how long housing will remain affordable especially if mortgage rates start to rise again it's a precarious situation that many Americans are facing as they must weigh the costs and benefits of owning a home at an increasingly expensive Market it remains to be seen whether or not housing will become more affordable in the coming months but it is certain that this issue won't go away anytime soon with prices so high more and more Americans are having to deal with the housing crisis that has left them on the brink of eviction unable to afford a home or rent an apartment in their area predicting the housing market future [Music] affecting the housing Market's future is a notoriously difficult task as home prices have continued to rise more Americans find themselves on the brink of eviction as they're unable to afford the increasingly High Cost of Living economists debate whether or not home prices will continue to drop and if so for how long and by how much current trends suggests that the cooling down process in the market may be nearly wrapping up despite how unaffordable housing still is there is also Regional dispersion where some markets like those out west are still experiencing a cool down in home prices unfortunately it remains too early to accurately predict the future of the housing market due to the activity grinding to a halt during the winter months the future of housing affordability relies heavily on supply and demand which could be affected by existing homeowners locking in low interest rates and Builders constructing homes that people can no longer afford due to inflation tightening their budgets forward much of the Market's Prosperity will depend on how comfortable consumers feel about returning to the market it's clear that this is a future that many are watching with caution and concern as such it is important to stay informed on changes in the housing market so one can best assess their financial situation and make decisions accordingly with the right resources and knowledge anyone can find themselves on a path toward Financial Security ultimately it is essential to keep an eye on housing Trends and prepare for any potential challenges the market might present buying a house Millennials with higher incomes are the ones mostly buying houses as other potential buyers struggle to keep up with ever increasing prices or lack the credit score needed for loan origination with many investors scooping up affordable houses in major markets younger Millennials are getting priced out and unable to accumulate wealth the medium first-time buyer is also in their 30s and 45 percent of home buyers last year were first-time buyers despite this the homeownership rate for people under 35 increased by 3.4 percentage points between the first quarters of 2019 and 2022 as this generation aged into home buying however those people under 35 who are buying houses are more likely to be 33 year olds and not people in their 20s in the end home ownership rates for younger adults still remain lower than before the pandemic due to mounting Financial pressure and the inability of many to keep up with rapidly Rising home prices to combat this more affordable housing options and programs are needed to help those struggling to buy a house wages need to rise in order for young people to be able to afford a home this would enable more young adults to buy a house and build up their wealth without these steps the future of America's housing market looks very uncertain once their housing status for those priced out of the market and unable to afford to purchase a home their housing status is often one of renting this has become increasingly more difficult in recent years as rental prices have been on the rise while wages remain stagnant according to a moody report last month the median renter is now spending 30 percent of their income on rent which is right at the affordable housing threshold this has caused a shift in Americans living arrangements leading to more people moving into multi-generational households the share of people living in households with multiple Generations doubled from 1971 to 2021 reaching 18 according to Census Data young adults between the ages of 25 and 29 are most likely to be living in multi-generational households mostly As a result of financial issues additionally many are moving back in with their parents to care for either adults or children or simply because they've always had that arrangement so while purchasing a home is becoming increasingly Out Of Reach for many Americans they are forced to look for alternative living arrangements in order to make ends meet this can often mean renting or moving into a multi-generational household no house means no kids for some for many Americans the prospect of owning a home is becoming increasingly difficult to achieve the rising cost of real estate and The Limited availability of affordable housing means that even those with steady incomes may find it impossible to become homeowners unfortunately for some this means that having children is also Out Of Reach according to a study published in the Journal of public economics short-term increases in housing prices have led to decreases in fertility rates among those without a home by 2.4 percent however homeowners whose home values increase by ten thousand dollars experienced a five percent increase in fertility rates the Great Recession and other economic factors have played a role in making it difficult for young people to purchase a home the cost of college student debt and graduate education have further complicated the situation and made it harder for people to build up stable incomes that would enable them to buy a home as Jared Tucker an expert on the economics of housing markets pointed out housing costs were part of a Nexus of financial challenges facing today's young adults that add up to it just being more expensive more challenging to put together the sort of secure lifestyle that many view as a prerequisite or at least sort of as a concurrent requisite for having kids ultimately the inability to afford a home has meant that for some people having children is simply not an option unfortunately it could be years before these individuals are able to achieve their dream of becoming homeowners and starting a family the cost of housing is becoming increasingly Out Of Reach for many Americans with wages failing to keep up with costs and the availability of affordable housing continues to dwindle people are being forced to look for alternative living arrangements or risk eviction Beyond this many individuals are unable to even consider having children due to the high cost of housing it could be years before these people are able to achieve their dream of home ownership and starting a family [Music] to you what precautionary measures should the American government Implement to combat increasing Health prices and prevent evictions let us know in the comments below make sure to subscribe to our Channel and stay tuned for more updates until next time goodbye

Channel: Capital Cast

Views: 1,482

Keywords: housing market update today, housing market 2022, housing crisis 2023, home prices 2023, housing crash florida, housing market, housing market crash 2023, mortgage rates today, real estate crash 2023, mortgage rates forecast 2023, mortgage rates predictions 2023, housing bubble, us economy

Id: zcIVLKw-r8I

Length: 12min 8sec (728 seconds)

Published: Fri Jun 16 2023