"In the wake of the Great Recession, which lasted from December 2007 to June 2009, home prices fell precipitously, bottoming out in February 2011 at 25% lower than the pre-recession high reported in July 2006, according to the Case-Shiller index. Plunging home values left millions of Americans hesitant to invest in a home and led to a sharp decline in the number of skilled laborers in the homebuilding sector."
"The reduced rate of new home construction created a housing shortage estimated at up to 4.7 million units. When limited housing supply met rising demand precipitated by the COVID-19 pandemic, list prices surged. According to the Case-Shiller index, home prices have risen by more than 55% since early 2020. Over roughly the same period, median wages among full-time workers increased by just 27%, according to the Bureau of Labor Statistics. Now, millions of Americans are priced out of the housing market."
The Great Recession caused home prices to fall about 25% from the 2006 peak, bottoming in February 2011. A sharp decline in homebuilding reduced construction starts to 6.8 million in the 2010s, down from 12.3 million in the 2000s, creating an estimated housing shortage of up to 4.7 million units. Pandemic-era demand met constrained supply and pushed list prices up more than 55% since early 2020, while median full-time wages rose roughly 27%. The median U.S. list price reached $425,000, 5.2 times the national median household income of $81,604, leaving millions priced out of the market.
Read at 24/7 Wall St.
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