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https://www.foxbusiness.com/real-estate/high-housing-costs-hitting-record-highs-harvard-university-report-says
Housing costs hit an all-time high, according to a new Harvard University report published in June.
Economists
predict mortgage rates will remain elevated for the rest of the year
and will only begin to fall once the Federal Reserve starts cutting
rates.
The high cost of housing is
making it hard for many Americans to make ends meet, and monthly rents
are rising faster than wages, according to a new housing report from
Harvard University.
The Joint Centers for Housing Studies of Harvard University report was released in June.
The annual report says housing deals are hard to come by right now.
Experts say it's hitting more and more people how much they would need to save to buy a new home. (Kennedy Hayes/ Fox News)
Daniel McCue, the senior researcher on the Harvard University Housing Report, says home prices are steep right now and there is not enough supply.
"Middle
and lower income renters are seeing a shortage. We've lost over 6
million low-rent units over the past 10 years," McCue said.
The lead author of the report said there are a lot of homeowners who can't afford to move right now even if they wanted to.
Rachel
Burkholder said she is looking for a new home in the Denver suburbs
because she wants to find a bigger space to fit her family. Burkholder,
who's a teacher, said she's been working an extra job to afford a new
home and that inflation has made it hard to save for a new home.
"It's
been daunting because, like everything else, it's going up," Burkholder
said. "I feel like everything that you purchase at the store now has
gone up substantially, so learning how to budget better has been a
challenge."
The report cites that higher interest rates and rising property taxes are partially to blame for the high housing costs.
Housing costs hit an all-time high, a new report says. (Kennedy Hayes/ Fox News)
Daryl Fairweather, the chief economist at Redfin, said housing costs are up in almost every part of the country.
"First
it was the south that was getting more expensive, we saw a boom and a
bust in places like Austin, but even the midwest and the northeast are
now seeing rapid price growth, in home prices and in rents," Fairweather
said.
More Americans are living in homes that stretch their budgets thin, the study said.
Almost half of all renters are spending more than the recommended 30% on rental costs, experts said. (Kennedy Hayes/ Fox News)
One
in 4 homeowners are spending more than the recommended "30 percent of
their income" on housing costs such as utilities and mortgage payments.
By comparison, paying rent to live in an apartment is even pricier.
Almost half of all renters are spending more than the recommended 30 percent on rental costs.
Experts add that rental costs don't seem to be going down anytime soon. So, if you can afford it, now might be the time to buy.
"Going
into this, knowing that there's going to be some sacrifices we are
going to make as a family. But also knowing that there's some wiggle
room especially looking now when there's not as much competition,"
Burkholder said.
Economists predict that mortgage rates will remain elevated for most of 2024 and that they will only begin to fall once the Federal Reserve starts cutting rates.