U.S. Housing Affordability Could Normalize Within 5 Years, Redfin Says
A new Redfin report projects housing costs may return to normal within five years, though timelines vary sharply by metro area.
U.S. housing costs could return to pre-surge norms within five years, according to a new Redfin report, though the trajectory depends heavily on how mortgage rates and home prices move in the months ahead.
The recovery is not expected to be uniform across the country. Markets including San Jose, Oakland, Seattle, Portland, and Austin are the closest to returning to historically normal affordability levels, the report found.
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By contrast, half of the metro areas analyzed face a far longer road back. In those markets, housing costs could remain elevated for at least a decade, underscoring the deep regional disparities that have come to define the post-pandemic real estate landscape.
The findings highlight the dual pressures that have squeezed buyers since 2020: elevated home prices driven by pandemic-era demand and persistently high mortgage rates that have kept monthly payments out of reach for many households. The pace at which either factor retreats will largely determine when — or whether — affordability returns.
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