The article discusses the dramatic rise in U.S. household income needed to purchase a typical home, which increased by 79% from January 2020 to 2025. The surge in housing demand during the pandemic, driven by low interest rates and remote work, coupled with a limited housing supply, has led to soaring home prices and deteriorating affordability. The typical home value rose to $356,776 in January 2025, a 44% increase from January 2019, revealing a crisis as incomes fail to keep pace with rising housing costs.
"During the Pandemic Housing Boom, housing demand surged rapidly amid ultra-low interest rates, stimulus, and the remote work boom. The surge created unprecedented pressure on the housing supply, leading to soaring prices and deteriorating affordability."
"The typical U.S. home value measured by the Zillow Home Value Index in January 2025 is still a staggering +44% greater than in January 2019. This sharp increase reflects the market's struggle to meet post-pandemic demand."
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