The pandemic made housing less affordable, but not in the obvious places

"During the past five years, mortgage rates around 7% have severely constrained affordability, pushing homeowners to spend roughly 45% more of their income on mortgage payments."

"In the recent shift, smaller metro areas and their surrounding regions have seen significant home price increases, with growth rates surpassing 50% in rural and suburban locations."

The pandemic catalyzed a migration toward more affordable living in smaller metro areas. While these areas experienced significant home price gains exceeding 50%, income growth has struggled to keep pace, increasing affordability concerns. Rising mortgage rates, currently near 7%, have also exacerbated the issue, compelling homeowners to allocate a greater portion of their incomes toward mortgage payments, reaching 45% more than before. This juxtaposition of rising prices amid lagging income growth has left many households in challenging financial positions regarding housing.

Read at www.housingwire.com