Here are some facts that I think may be true. Back in the 80s, rates were 20% and people were still buying homes. Today, what's the rates again and we are crying inflation?
Well if you use the property of proportion, we see that the average single person annual income was 20k for instant but houses were only 40k to buy. That's just 2x your annual pay to buy a home folks.
Now, rates are lower but yet, average income is 50k and the average home is 6x of that at $300k
It just makes it that harder for the next generation to save to buy a home.
However, the once upon a time biggest generations are them baby boomers and they are old now. That means the kids are all grown up and they are downsizing so as they retire, so will there be more houses on the market.
Right now, supply is lacking but the demand was high. The feds jacking up the rates and now you have demands falling. What is missing is the supply part where boomers will sell their homes to balance things out.
