The soaring housing cost has brought tremendous pressure to the homeowners and renters

Over time, the cost of housing has been increasing, but in recent years, their inflation rate has far exceeded the wage growth rate.

At present, Americans who are working hard to realize their livelihoods now find that the challenges of the competitive costs of balancing groceries, housing and transportation, and also clear debts and savings.

Housing inflation rate is the rate of rising housing costs, which is essential for shaping the overall inflation rate. Since early 2023, it has exceeded the overall inflation rate, and it is still the key factor why inflation is so stubborn and difficult to curb.

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The homeowners and renters are facing different housing costs, but in the past five years, the prices of these two groups are higher than normal prices.

Although buying houses is usually regarded as a way to establish wealth and acquire net worth for houses, many potential homeowners have high prices, high mortgage interest rates, and market competition has increased and housing prices have soared.

Because more and more renters are facing cost burdens and buyers who face anti -wind in the housing market, many young Americans cannot reach milestones.

Rental and buyers feel the pressure of inflation

According to a recent report of Redfin, the cost of a medium -ranked apartment in the United States is $ 1,592, which means that renters need a salary of at least $ 63,680 to bear the rent. Although this is much higher than the average wage in the United States, it shows improvement, marking the minimum wage required for renters since March 2022.

In general, renters have more income than ever, with an average salary of $ 54,752, higher than $ 40,505. However, because the unbearable housing market is waiting for high mortgage loan interest rates, the increase in inflation rate and the older millennials may increase wages.

Redfin senior economist Sheharyar Bokhari predicts that renters will continue to enjoy a favorable leasing market in 2025.

More information about buying houses:

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He said: “Due to the prosperity of the nearest apartment building, with the growth of wages and the growth of rent, this year’s rent burden will continue to improve.” “As the interest rate of housing prices and the interest rate of mortgage loans is still high, the rent and purchase of the purchase and purchase The gap between burden ability may be further expanded.

“This means that potential buyers, especially buyers from the younger generation, may decide to continue rent for a longer time, because this is the only affordable choice.”

The median mortgage payment has increased to $ 2,686 this month, the highest in seven months. As the price of houses becomes more and more unreal, consumers may choose to stay in the leasing market.

The rising cost of housing is the posture of the younger generation

Although the mortgage interest rate showed a significant decline and reached nearly 6 % in September, the rate continued to 7 % in the past few months.

Experts point out that such high mortgage interest rates and rising house prices make potential buyers outside the court. House sales decreased by 10 % each year, and houses stayed in the market for 52 days. This is the longest time in two years.

Although the rent may be more favorable in such a challenging home purchase environment, due to the affordability, the ownership of the Millennium and the Z Generation of the Z Generation may have a long -term impact.

Related: Dave Ramsey warns Americans to avoid such huge mortgage errors

A 2024 credit business research found that almost half (49 %) of Americans pointed out that inflation and mortgage interest rates made it “impossible” to buy houses, but many people also found that it was difficult to afford rent. The states of 30 % and 27 % of the Millenniums of Gen Z were no longer afforded by investigations, and some of them considered the necessity of paying housing costs.

Although buying houses may not be a common way to establish wealth, economists have found that the gap between wealth between renters and homeowners is expanding. In the past 30 years, the wealth of homeowners has increased by $ 900,000, and “tenants” have increased an average of $ 56,000.

The younger generation may not establish wealth when delaying houses and waiting for housing deadlock.

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