As we pointed out yesterday, the still-tight supply in the US housing market is helping drive home prices higher, creating a crisis of affordability that has placed homes financially out of the reach of many millennials.
“Meanwhile home price appreciation continued to outpace wage growth, speeding up the affordability treadmill for prospective homebuyers even without the rise in mortgage rates.” The median home price is currently $245,000, up 4.7% from a year ago, but representing a slowdown from the 7.4% pace of appreciation in the first quarter.
Over a longer period of time, the trend is even more jarring: Prices have increased 75% nationwide since bottoming in 2012, while average weekly wages have only increased 13% during the same period.
The list includes Los Angeles County, California; Maricopa County, Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida.
Otherwise, most will need to rely on help from parents if they ever want to afford a home.