The Rundown Deep Dive: How an Entire Generation Got Locked Out of Homeownership
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Nov 15, 2025 Young Americans are grappling with the most challenging housing market in decades. Home prices have skyrocketed, and mortgage rates have doubled, pushing buyers' average age to 40. The episode delves into why builders have underproduced homes since 2008 and how homeowners with low mortgage rates create a 'lock-in effect' that limits inventory. While rising rents show some signs of relief, the discussion reveals that major supply increases are crucial for affordability. Political proposals like 50-year mortgages are also scrutinized as potential but inadequate solutions.
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Homebuying Costs Have Doubled
- Combining a 50% rise in home prices with doubled mortgage rates has more than doubled monthly payments in five years.
- This pushed mortgage payments from ~20% to over 30% of income and raised the median first-time buyer age to 40.
Underbuilding Since 2008 Created A Shortage
- Builders underbuilt homes since the 2008 crash to avoid risk, creating a multi-year shortfall.
- Estimates put the shortage between 2.8 and 4 million units, which could take years to fix.
Regulation And Permits Raise Building Costs
- Restrictive zoning and slow permitting make new housing expensive or impossible in many cities.
- Regulatory friction plus volatile material and labor costs discourage builders from increasing supply.