Priced Out: Why Rising Mortgage Rates Are Crushing the American Dream of Homeownership
Download MP3Episode Description
Discover the puzzling reality of today's housing market: rising interest rates, declining sales volume, yet home prices continue to climb. We break down the complex forces behind this housing crisis and why traditional supply and demand rules seem to be failing American homebuyers.
Key Topics Covered:
- The Housing Market Paradox - How prices keep rising despite fewer buyers and higher mortgage rates
- Supply and Demand Breakdown - Why traditional economic principles aren't working in today's real estate market
- Rental Market Competition - How desperate renters are bidding above asking prices to secure housing
- Federal Reserve Impact - Why the Fed's interest rate hikes aren't solving the inflation problem in housing
- 24-Year Housing Shortage - The decades-long deficit in home construction that created today's crisis
- Construction Reality Check - Why even the 2005-2008 building spike wasn't enough to meet demand
- Population Growth vs. Housing Stock - How growing households outpaced new construction for over two decades
- Missed Opportunities - Why the low interest rate period of the last decade didn't solve the housing shortage
- Apartment Market Surge - How millennials and Gen Z initially absorbed into rental markets before seeking homeownership
- Pandemic Housing Shift - How COVID-19 changed priorities from entertainment to homeownership
- Construction Timeline Challenges - Why building new homes isn't a quick fix (land acquisition, permits, zoning, infrastructure)
- Market Outlook - Expert predictions on supply levels and future market conditions
- Long-term Solutions - Why workforce housing and urban density projects face ROI challenges
- Historical Context - Why this housing crisis differs from previous market crashes
Market Stats Mentioned:
- Current housing supply: 2.6 months (still critically low)
- Average household size: 2.5 people per housing unit needed
- Construction timeline: Several years from land acquisition to completion
Expert Featured:
Ian Shepherdson, Chief Economist at Pantheon Macroeconomics
What's your take on the housing crisis? Share your thoughts in the comments below.
Ian Shepherdson, Chief Economist at Pantheon Macroeconomics
What's your take on the housing crisis? Share your thoughts in the comments below.
