"The situation is even more challenging for aspiring homeowners: The median house price in the U.S. has risen about 90% in just 10 years, or more than 6% each year. And as prices rise—the median home sells for more than $400,000 now—so too do the ages of homebuyers. The median first-time U.S. homebuyer is 38 years old, up from 31 about a decade ago."
"Put simply, there isn't enough housing. As an economist, I know that when demand rises faster than supply, prices have to increase. And supply is severely limited in the places where people most want to live: big cities such as New York and San Francisco. In most of these cities, planning and zoning laws prevent developers from building enough to meet demand. For example, rezoning a plot of land from commercial to residential often requires mountains of paperwork."
About 1.5 million more adults under 35 live with their parents now than a decade ago, a 6.3% increase. Urban rents rose roughly 4% per year while full-time wages grew only 0.6% annually, reducing affordability for new graduates. Median U.S. house prices increased about 90% over ten years, pushing the median first-time buyer age to 38. Housing supply in desirable cities remains constrained, and planning and zoning rules create substantial obstacles for new construction. Rezoning often requires extensive paperwork and neighbor objections can stall developments. Relaxed zoning in Austin led to increased construction and notable rent declines.
Read at Fast Company
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