Plain English with Derek Thompson Why It’s So Hard to Buy a House Right Now—and Why It Might Get Better Soon
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Dec 8, 2023 Mark Zandi, chief economist at Moody’s Analytics and host of the Inside Economics podcast, discusses the current U.S. housing market crisis. He explains why high home prices and mortgage rates are making ownership dreams seem unattainable for many young people. The conversation delves into the impact of remote work on housing preferences and how job stability and wage growth might soon improve affordability. Zandi also highlights potential signs of recovery in the market, with falling mortgage rates and an uptick in building material orders.
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Rent or Buy?
- Be patient if you're looking to buy a home.
- Prices and mortgage rates are high, and inventory is low, making renting a better option for now.
Historically Bad Market
- The current housing market is exceptionally challenging for buyers.
- Factors include high prices, mortgage rates, and limited inventory, creating a historically difficult situation.
Genesis of the Housing Crisis
- The 2008 housing crash led to a decade of underbuilding and increased fixed costs for builders.
- This, combined with zoning restrictions, incentivized building larger, more expensive homes, exacerbating the affordability crisis.