Homebuyers Stretch Budgets to Purchase Homes Despite Affordability Challenges, Motivated by Inflation Fears and Desire for Fixed Costs
-
Housing prices and mortgage rates have risen significantly, reducing affordability, yet home sales continue to increase as buyers seek to hedge against inflation fears.
-
Homebuyers are stretching budgets to purchase homes as an inflation hedge, encouraged by history showing housing values can outpace inflation.
-
Home ownership provides fixed shelter costs compared to unpredictably rising prices for other expenses.
-
Reduced supply from existing owners not selling and builders shifting to rentals has kept prices up despite affordability challenges.
-
The housing market dynamics are complex, with multiple motivations at play beyond basic supply and demand considerations.