Higher Home Prices and Higher Rates Mean Bigger Affordability Hurdles for the U.S. Consumer

Max Gillet and Cindy E. Hull
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Max Gillet: https://www.chicagofed.org/people/g/gillet-max

Chicago Fed Letter, 2023, vol. no 481

Abstract: In the U.S., homeownership is often described as part of the “American dream,” a way for consumers to accumulate wealth and gain other economic benefits. Almost two out of three U.S. households own the home they live in, a relatively stable amount over the last decade. Buying a home is usually the largest investment that a consumer will make, and the purchase price usually far exceeds what most can afford out of their current savings. In 2022, roughly 70% of home purchases were made with the help of mortgage financing.

Keywords: Urban; Rural; Regional; Real Estate; transportation economics (search for similar items in EconPapers)
JEL-codes: R21 R31 (search for similar items in EconPapers)
Date: 2023
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