In a clash of opposing forces, the U.S. housing market finds itself embroiled in a fierce battle. On one side, deteriorated affordability resulting from a spike in mortgage rates from 3% to over 6% in 2022, just after national home prices surged by more than 40% during the Pandemic Housing Boom, is exerting downward pressure on home prices. On the other side, the scarcity of existing inventory, exacerbated by the “lock-in effect,” as many homeowners are reluctant to sell and buy anew, fearing the tradeoff from a 2% or 3% mortgage rate to one in the 6% to 7% range, is exerting upward pressure on home prices.
I feel like there’s also a “locked out” effect… As in I’m locked out of the housing market entirely now. It’s insanely frustrating as I was just working on a promotion that would leave me comfortably affording the cheaper houses, then covid screwed everything… Now I’d be paycheck to paycheck in a dilapidated shithole in the worst parts of the worst towns around and the way housing seems to work, it’s just infinite growth forever so it’s never going back down…
I feel like there’s also a “locked out” effect… As in I’m locked out of the housing market entirely now. It’s insanely frustrating as I was just working on a promotion that would leave me comfortably affording the cheaper houses, then covid screwed everything… Now I’d be paycheck to paycheck in a dilapidated shithole in the worst parts of the worst towns around and the way housing seems to work, it’s just infinite growth forever so it’s never going back down…