Housing affordability has become a major concern due to rising home prices and increased competition for available homes. These conditions are making homeownership less attainable for many Americans, with recent years characterized by dramatic price increases.
Personal finance website GOBankingRates looked at how the average cost of a home has changed over the past decade and how various socioeconomic factors have influenced home prices.
According to GOBankingRates, the average home sale price in 2014 was $347,700, reflecting a strong economy with high job growth and low unemployment after the Great Recession. However, much has changed since then. Following a series of interest rate hikes in 2022, the housing market began to cool in 2023, but prices were still elevated, with the 2023 average home price reaching $513,800.
Increases in the average home sale price aren’t inherently bad. In fact, growth in home prices does mean the economy is growing. However, the pandemic created widespread shortages. With supply still low and interest rates high, many Americans are having difficulty entering the market. Read more