US Housing Market May Finally See Relief as Foreign Buyers, Illegals and Airbnbs Disappear
21st April 2025
One of the most detrimental consequences of the stagflationary surge in the US since 2020 was the meteoric rise in housing prices, from rentals to purchases to mortgages, across all markets. At present the cost of housing stands at around 30% of the average American’s income, with home prices and rentals seeing at least a 60% increase in only 5 years. In high traffic markets the prices have jumped far higher.
Inflation in fixed expenses like housing, utilities, gasoline, food, etc. directly reduce disposable income which forces consumers to cut back on retail and recreational purchases. Higher prices in retail goods can be weathered through savings and spending adaptation, higher prices in fixed expenses is much more difficult to deal with and the results are hard to miss.
There may, however, be a light at the end of the tunnel with new developments suggesting a decline in housing costs is on the way.
.UPDATE: The Family Home: From Shelter To Asset To Liability