How bad is the housing affordability problem?
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This Fortune article has some interesting data. I'll quote some of it that stood out to me after I read it again.
I knew some of this information, only because I've observed it. I already knew what the numbers would look like, but to see them reported is still somewhat shocking.
https://fortune.com/2026/04/22/home-prices-out-of-control-affordibility-crisis/
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I hit Fortune's paywall...here's a non-subscription version:
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Ok, it wasn't the fact that housing affordability had been getting worse that got my attention. That's kind of obvious. It wasn't the fact that all age groups are getting hit. I didn't know this but it didn't surprise me. It seems akin to the fact that all age groups are among the newly homeless.
The part that stood out to me was the following. It proves something I've been thinking for several years.
"The AEI also calculates the share of house-key holders by income, specifically for that “first-timers” group. As of 2022, only one-quarter of families earning $50,000 to $75,000 owned homes, rising to just 30% in the $75,000 to $100,000 tier. By comparison, 70% to 80% of households making $175,000 and up have captured the long-standing American Dream."
A family or an individual needs an upper-middle class income today to afford a middle class lifestyle.
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Florida migration boom fades as rising costs push residents out - Axios Tampa Bay https://share.google/nYXcRq7rCyLT5tyts
Real estate prices here according to one source (don't remember where I heard it), are projected to change 0.0% in 2006, after years of climbing prices.
This isn't what I'm observing in my area. I'm seeing prices decline in real time. Moreover, buyers are getting discounts off of asking.
The renovated place I wanted in my area of the city was listed for 99k. It sold for 89k.
People aren't buying. The economy is getting worse for various reasons. Energy when factored into inflation will make it still worse. People don't have the income. They don't have the savings. They aren't optimistic about the economy.
Everyone seems to agree that many people will lose their homes, and unlike in 2008, this time it will be institutional investors and cash buyers who will be able to afford to buy.
I mean I think the situation in general is a mess.
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