According to the S&P CoreLogic Case-Shiller US National Home Price Index, housing costs surged by 53% between January 2020 and September 2024. This significant increase, driven by supply constraints and high demand, has created an acute housing affordability crisis in the United States, with many households feeling the financial strain as their incomes fail to keep pace.
The median home price is now 4.9 times higher than the median household income, indicating a stressful financial scenario for many Americans. In 1990, this ratio was only 3.1, showcasing a stark increase in the financial burden of homeownership over the past few decades.
Financial experts suggest that no more than 30% of pre-tax income should be spent on housing. However, between 2019 and 2022, the number of Americans exceeding this guideline increased by three million, highlighting a severe trend where families are being increasingly pushed beyond their financial limits to secure housing.
Despite surging home prices, there are still regions where homeownership is feasible for a wider array of income levels. This disparity across states indicates that while the crisis is widespread, viable options still exist for many if they are willing to explore different markets.
Collection
[
|
...
]