U.S. housing affordability just hit its worst level on record.
Not 2008. Not the early 80s. Right now.
Median home prices are sitting near all-time highs while mortgage rates remain elevated. The math just doesn't work for most buyers anymore.
Wage growth hasn't kept pace. Down payments are massive. Monthly payments are eating up a bigger chunk of income than ever before.
This isn't just a housing story. It's a consumer spending story. When people are locked out of homeownership or house-poor, discretionary spending takes a hit. That flows through to retail, home improvement, furniture, appliances.
For markets, watch homebuilders, mortgage REITs, and consumer discretionary stocks. This pressure isn't going away until rates drop meaningfully or prices correct.
Historically, these extremes don't last forever. Something has to give.
Not 2008. Not the early 80s. Right now.
Median home prices are sitting near all-time highs while mortgage rates remain elevated. The math just doesn't work for most buyers anymore.
Wage growth hasn't kept pace. Down payments are massive. Monthly payments are eating up a bigger chunk of income than ever before.
This isn't just a housing story. It's a consumer spending story. When people are locked out of homeownership or house-poor, discretionary spending takes a hit. That flows through to retail, home improvement, furniture, appliances.
For markets, watch homebuilders, mortgage REITs, and consumer discretionary stocks. This pressure isn't going away until rates drop meaningfully or prices correct.
Historically, these extremes don't last forever. Something has to give.
