Yellen: Prices and Rents Soar While Wages and Affordable Housing Plunge

Yellen said prices won't return to pre-pandemic levels but wages have risen; however, 43% of workers have lower real wages than before the pandemic.

Housing affordability is worsening - half of renters are now cost-burdened, spending 30%+ of income on housing.

The U.S. has lost over 2 million housing units affordable to low-income renters since 2012. Rent increases are far outpacing income gains.

The Fed's interest rate hikes have increased debt costs to build apartments, resulting in higher rents and fewer affordable units.

Economists increasingly believe the Fed is being too aggressive with rate hikes, the highest share with this view since 2011.