How the Housing Market for Young People Became 'A Total Disaster'
16 days ago
- #housing crisis
- #economic policy
- #young homebuyers
- The US housing market has become increasingly unaffordable for young people, with the median age of first-time homebuyers rising from 28 in 1991 to 38 today.
- Homeownership among young people has declined to all-time lows, correlating with plummeting marriage and fertility rates.
- The housing crisis has three key historical layers: 50-year zoning restrictions, 20-year economic downturns affecting construction, and 5-year pandemic-induced price surges.
- COVID-19 exacerbated the crisis, with home prices increasing by 42% between March 2020 and summer 2022, equivalent to two decades of inflation in two years.
- Rising interest rates have further strained affordability, with mortgage rates jumping from 2.5% in early 2021 to 7% by 2023, doubling monthly payments.
- Political responses have been inadequate, with Trump's policies exacerbating scarcity through tariffs and immigration crackdowns, while Democrats struggle to implement effective solutions.
- Proposed solutions include local policy reforms like California’s CEQA reform and federal incentives for cities that increase housing permits.
- Housing affordability has become a top political issue for young voters, influencing elections and media discourse.