The Housing Market Crisis

The current state of the American housing market is characterized by a severe shortage of homes, leading to skyrocketing prices that have reached historical highs. Data indicates that despite rising prices, homebuilders have failed to increase supply, largely due to a prolonged dearth in home construction over the last several years. Compounding this issue, high interest rates have discouraged builders from initiating new projects, causing a significant gap between housing permits and actual starts. As a result, affordability has drastically decreased, with the Atlanta Fed reporting that housing costs are now more burdensome relative to median income than ever before.