Housing Market Faces Affordability Crisis; Zillow Economist Urges More Home Construction and First-Time Buyer Aid
-
Home prices remained high in 2022 despite rising mortgage rates, making housing unaffordable for many. Zillow's chief economist hopes more homeowners sell to ease tight inventory.
-
There is a significant housing shortage across the country. The economist calls for ramping up new construction "Build, build, build."
-
Mortgage rates have fallen from an 8% peak but are still relatively high. The economist hopes rates hold steady or descend slowly.
-
Rental growth stabilized in 2022 after wild pandemic swings. The goal is for rent increases to remain around 3% annually.
-
The economist wishes for a strong, stable job market to enable a "soft landing" for the economy and more first-time homebuyer programs.