he High cost of housing in The United States is putting many citizens in a bind as monthly rents rise faster than salaries, a new report from Harvard universitypublished in June by Harvard Joint Centers for Housing Studies.
“Good housing deals are hard to come by right now,” according to the annual report. “House prices are high and there is not enough supply,” said Daniel McCoy, lead researcher on the report.
The expert explained that middle- and low-income tenants face a Lack of unity“We have lost more than 6 million affordable rental units in the last decade,” McCoy said. Fox Business.
The problem is not limited to renters. The report’s lead author explains that many homeowners cannot afford to move, even if they wanted to. The ideal situation is one of Rachel Burkholdera teacher looking for a bigger house in the Denver suburbs to house her family.
Share Burkholder with Fox Business He had to work a second job to save money to buy a new house, and inflation made that goal more difficult to achieve.
“It was frustrating because, like everything else, it goes up,” she said. “I feel like everything you buy in the store has gone up so much, so learning how to budget has been a challenge.”
The report also highlighted that Higher interest rates and higher property taxes They are partly responsible for the high cost of housing. Daryl Fairweather Redfin’s chief economist said, Fox Business “Housing costs are rising in almost every part of the country.”
In addition, he highlighted that initially it was the South that became more expensive due to the boom and subsequent decline in places like AustinBut now rapid increases in home prices and rents are being seen in the Midwest and Northeast.
“A quarter of homeowners spend more than 30 percent of their income on household expenses, such as utilities and mortgage payments,” the study said. By comparison, paying rent on an apartment is more expensive.
Experts point out that rental costs are not going to come down anytime soon, so “if you can afford it, now may be a good time to buy,” the report recommends.
“Going into this, knowing that there will be some sacrifices that we will make as a family. But also knowing that there is room to maneuver, especially considering now when there is not as much competition.
Finally, economists expect that mortgage rates It will remain high through most of 2024 and will only start to decline once the year is over. Federal Reserve Start lowering rates.
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