The housing crisis pushes the American dream far from the reach of young buyers

The ownership of homes has always been It is considered the cornerstone From the “American dream” because it symbolizes the ability to build wealth and ensure long -term financial stability.

Today, this dream changes slightly as young generations choose to rent or stay at home with their parents for a longer period of time. It is the result of the ability to afford the costs that are still continuing in the housing market, according to Mauricio Omski, Mauricio Omski.

“At the end of the day, the American dream is to own real estate, build shares, pay your mortgage and get a house,” Omski said. However, achieving “the American dream of having your home takes longer” with the continued mortgage rates and home prices Weight on the ability to withstand costs, He added.

The housing crisis deepens with the passage of 47 main metro areas now on home buyers to spend more than 30 % of income

“The younger generation cannot really have homes,” he said. “Once again, I use the word ability to afford, but it is a problem with the ability to afford costs.”

As of May, the model American family will need to spend 44.6 % of its income to provide a medium -price house, according to modern data from RealTor.com. This is much higher than the recommended 30 % threshold, highlighting how “the ability to withstand the costs is only tense, it has almost became extinct,” said economists in RealTor.com in the newly published report.

Jake Karim, the chief economist in RealTor.com, told Fox Business that there are three main engines of the ability to withstand costs: home prices, interest rates and income. However, recently, “there was no slim or non -existent movement” on any of these main measures to provide a lot of positive momentum on the ability to afford costs.

Prices are determined by Offer and demand in the marketAnd while Karimel said the prices do not rise as they did during the epidemic, but they do not decrease even with the height of the stock. The offer increased by 31.5 % on an annual basis, according to the latest RealTor.com data.

The American Housing Crisis: The CEO of RealTor.com says that there is a way to solve it

“When home supplies rise on the market, but prices do not decrease, this is an indication that demand in the market is very weak,” Kareem added.

High rates continue to the weight of the demand, and thus home sales, according to Karim. Despite the rates of 4 basis points, to 6.77 % last week due to the markets that interact with the comments of the Federal Reserve Chairman Jerome Powell and the latest consumer confidence index data, it is still “constantly high because the Federal Reserve has not yet indicated an imminent reduction in their next meeting in July.”

However, if the prices are easy, UMANSKY does not believe that consumers will have interest rates again on a scale of 2.5 % to 3 %.

Looking at these dynamics, UMANSKY said that his company began to see confidence in renting. In addition, his friends and agents see their children returning home.

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“I mean, we just see a lot and … they have the opportunity to save money,” he said. “The idea of ​​leaving home is not as needed as it was before, because parents are also a little more liberal and give little freedom to their children to enter and leave their home.”

Consumer confidence is also low, indicating that consumers do not expect their income or purchase to grow in the coming months, which is “the final obstacle to improve the ability to withstand housing costs.”

Economists at RealTor.com says there are still solutions to make housing more expensive, such as increasing income or reducing housing costs. One way to do this is building more homes at reasonable prices, according to the June RELTOR.com website

“The new home supply can help build new homes, especially at reasonable prices, in reducing price pressure in narrow housing markets,” according to the report.