The best president ever has seen starter home prices reach stratospheric new heights.
A starter home is defined as homes that are in the lowest third of home values in a given city. According to Zillow, that amount is now at least $1 million in 237 cities, the highest amount ever.
Just five years ago, that list included only 84 cities.
Of those 237 cities, 117 are in California (good job Newsom!).
New York with 31 and New Jersey with 21 are next on the blue state hit parade.
Starter home values have grown over 54% in the last 5 years. High mortgage rates have made homeowners less willing to move up to larger homes.
( I mean, who wants to give up a 3% mortgage for a 7% mortgage?)
According to Yahoo Finance,
People are delaying homeownership, and they're doing so because it takes longer to save up and to get on the first run of the housing ladder. There are a lot of people that want to buy a home. They're out there, but unfortunately, they're constrained by affordability challenges.
The average American right now:
Best. Economy. Ever!
The Fed isn't helping, as the benchmark interest rate is currently at a 23-year high, due to the Fed's attempt to fight inflation.
(Didn't Biden sign the "Inflation Reduction Act?" Why isn't that working?)
After the markets were battered last week, there are signals that the Fed will cut interest rates soon. Unfortunately, lowered rates will help home affordability, but will also create more demand, most likely pushing home prices up even more.
One solution is supply; but the home building markets were crippled by Covid lockdowns, creating shortages of building supplies that still have not yet been completely overcome.
And wouldn't you know it, the cities with highest home prices have the fewest new homes being built because they have the strictest building regulations in the country.
Thank you, government!
If you own a home, be thankful. If you don't, scrimp, save, work like a madman ... and don't vote Democrat.
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