America's Housing Crisis

Chart of the Week #5

Today's chart offers a snapshot of home affordability for the American middle class. It shows that only 16% of U.S. homes for sale in 2023 were affordable for the typical household. This is the lowest share on record.

If you look closer at the graph, you’ll see that this is down from 40% in 2021. That’s just a little over three years ago.

Not coincidentally, 2021 was the year when Joe Biden took office as the 46th President of the United States.

Such a surge in house prices compared to income levels within a timeframe this short is nothing short of alarming. And it is causing a housing affordability crisis across the U.S. right now.

Have a great weekend!

Lau Vegys