The inability to buy a home has become increasingly difficult for young adults in the US, with rising interest rates, inflated home prices, and stagnant wages forcing many into lifelong renting. Experts warn that this trend could lead to an entire generation being priced out of the American dream.
According to real estate investor Lori Greymont, the combination of rising interest rates, inflated home prices, and stagnant wages is creating a cycle where building equity feels increasingly out of reach for many. Dr. David Phelps, a financial expert, agrees that housing has become unaffordable for a significant portion of the population, especially Gen Z.
The average salary in the US can only afford a home priced at $110,928, which is significantly less than the current median home price of $420,400. Tom Spaeth, owner of Easal Properties, notes that the supply of homes affordable to young families has decreased from 50% to just 15% over the past decade.
Jonathan Alpert, a psychotherapist and author, believes that the housing affordability crisis also takes a psychological toll on young adults, causing anxiety, frustration, and feelings of failure. He emphasizes the importance of resilience, adaptability, and changing the narrative around this issue for those navigating these challenges.
Source: https://www.foxbusiness.com/economy/home-affordability-crisis-toll-americas-young-adults