Unaffordability defining residential real estate market

    Home prices are at an all-time high and a record number of renters are spending at least half their income on housing, Governing reports. 

    The U.S. housing market is “defined” by unaffordability, according to a new report from the Joint Center for Housing Studies at Harvard University. The annual report, The State of the Nation’s Housing, compiles reams of data to paint a picture of national and regional housing costs for homeowners and renters.

    The study shows that home prices hit an all-time high in the early months of the year, with prices rising in 97 of the 100 biggest markets studied. Home insurance premiums also rose an average of 21% last year, while property taxes are increasing and mortgage interest rates remain close to their two-decade peak.

    As a result, it now requires an income of just under $120,000 per household to be able to afford the monthly cost of a typical low-down-payment home loan at current rates. 

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