Affordability Crisis in the Housing Market

The housing market is facing a significant affordability crisis, exacerbated by rising home prices and increasing mortgage rates. Over the last 15 years, home prices have surged compared to income, particularly during the pandemic, leading to a situation where even with decreased demand, prices have not corrected significantly. Many markets, especially in regions like Florida and Texas, are experiencing steep insurance costs that further complicate affordability. As of the beginning of 2025, there are few signs of improvement in affordability, marking it as a prevailing concern for the housing market throughout the year.