The number of affordable homes for sale decreased in 86% of the 49 metro areas Redfin studied, even as the number of homes on the market grew.
“For the past few years, home prices have gone up faster than wages,” Redfin Chief Economist Daryl Fairweather told the Post. “That kind of growth really isn’t sustainable. At a certain point, there won’t be enough buyers left for the homes left on the market.”
Ownership rates have fallen dramatically since the financial crisis, coming in at 64.4% in the third quarter of 2018. It’s a sign that the traditional markers of middle-class life are getting tougher to hang onto.
Baton Rouge was not among the 49 metro areas studied, though New Orleans was included.
Still, similar trends can be seen in the Baton Rouge metro area, where rising mortgage rates have prompted some would-be buyers to remain on the sidelines. Last year’s Capital Region home sales saw a 5% decline from the year before, according to a report by the Greater Baton Rouge Association of Realtors, since the average wage increase didn’t keep pace with rising house prices.