Homes Are Unaffordable in 99% of the Country
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Yes, gotta love that Bidenomics. Homes in this country, 99%, 99% of the communities around the country, homes are unaffordable for the average American. Yeah, yeah. Median home prices last year, 575 US counties. What was found is that home prices in 99% of those areas are beyond.
the reach of the average income earner who makes $71,214 a year. It wasn’t that long ago we had the CEO of Ford say that new cars are unaffordable to Americans unless they make over six figures. Yep, again, you could talk about mortgage rates to some degree, but that’s not why.
Okay, normally when mortgage rates go up, the price of homes come down. That has an inverse relationship. Again, that there’s an affordability, what somebody can afford over the course of a month and how they go about evaluating a mortgage. Principle, interest, taxes, insurance, and all of that comes together. How much can one afford a month? Now, when mortgage rates go up,
The only thing that has to be adjusted is obviously the principal because it’s the only thing that can be adjusted in that equation. That hasn’t happened. One of the reasons is the overall speed of interest rates and how quickly the Federal Reserve has raised them, but there’s just not enough supply. It’s just that simple. There’s not enough homes out there. And again, this gets into inflation.
and the fact that I talk about supply and demand, okay? The reason why homes are unaffordable, it’s not because there’s too many dollars that are sloshing around at this point in time. There’s not enough homes that are out there. There’s been a mass exodus from areas around the country. Again, I see it. I see it again, I am 30 miles outside of New York, 30, 35 miles outside of New York City. Good luck.
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Good luck trying to find a home around here. It’s next to impossible. There was a mass exodus after COVID, people leaving the cities. And again, you’re not gonna find it, but nope, where to build around here. Again, it also talks about the fact that nobody wants to sell their house because they’ve got very low mortgage rates.
that there might be some things that could be done in regards to that and transferring mortgages, maybe to think outside the box and maybe to free up some of the inventory. But again, the people that are moving out of houses, they’ve got to move somewhere else as well. So it is a very difficult time right now for home buyers. Well, it’s very difficult time for, I’d say, most Americans when it comes to the cost of everything
that’s important. What are the things that are important? Yeah, oh geez, you know, you might want to get the new Apple 15. You got an iPhone 13. You don’t have to get that. You can sacrifice on that. You know, your television, your flat screen TV, that’s fine. You know, they got ones with a little bit more bells and whistles from a couple years ago. You don’t need that. What are the things you need? You know, everybody needs to have shelter. Everybody needs to have food. Everybody needs to have
energy, electricity, all of these things that we need to survive on have gone through the roof. And those are the things that are most important. Watchdog on wallstreet.com.
