The average cost per month has surged to $2,750, almost double what it was before the pandemic at $1,400/month.

This means it’s now 100% more expensive to buy a home in 2024 compared to 2020.

During the peak of the 2008 Financial Crisis, the average monthly home payment reached only $1,550.

And get this, the average American household would need to allocate 44% of their pre-tax income to afford a home today.

So, why the big jump?

Well, the Federal Reserve’s actions made borrowing money easy, pushing up demand and prices. Plus, people with low-interest mortgages are holding onto their homes, making fewer houses available for sale.

Now, the Fed is scaling back its support to control inflation, meaning higher interest rates are here to stay.
Balancing affordability and inflation is tricky.

Looking ahead, it’s uncertain how the housing market will shape up.

Finding ways to make homes more affordable while keeping inflation in check will be crucial.