"The wealth gain for owners was almost automatic as home prices rose sharply, but mortgage balances barely changed. The gap between what a home was worth and what was owed on it widened at a pace the Fed had never recorded before."
"In 2022, the ratio of median home value reached 4.6x, which was the highest level the Fed had ever recorded. This ratio answers a basic question around how many years of income a typical home costs."
The 2022 Survey of Consumer Finances reveals a stark divide in post-pandemic financial outcomes based on homeownership status. Homeowners saw a 44% increase in median net housing value from 2019 to 2022, translating into substantial equity gains. In contrast, non-homeowners faced escalating home prices, with the median home value-to-income ratio reaching a record high of 4.6x, making homeownership increasingly unattainable. While incomes rose, they did not keep pace with surging home prices, exacerbating the financial divide.
Read at 24/7 Wall St.
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