What CGL is Reading: “Housing Crisis 2022: 3 Graphs That Show How Wild Home Prices Have Become” by Thomas Yeung

On October 14, 2022, InvestorPlace, a website that provides financial news, published a snapshot of the US housing market, a critical sector of the US economy. Among its findings:

– Mortgage payments for a house, on the average, now consume 42% of a median U.S. family’s income,

– Much of the lack of affordability of housing stems from high home prices; and

– Home prices, according to one source, could rise another 3.8% year over year during 2023.

If buying a house is costly, renting one can also be a stretch from an income percentage perspective. Yeung reports that “9.9 million renters in the U.S. or 23%, already spend more than 50% of their income on housing costs.” Already, as Yeung notes, about a third of Americans between the ages of 25 to 29 live in households with the members of a different generation, usually their parents. To the extent mortgage rates continue to rise and house prices do not diminish materially, this cohort may remain effectively barred from being able to purchase residential real estate.

Do you have questions about the legal aspects of home ownership or renting a residence? If so, contact us to schedule an introductory consultation with Castle Garden Law.