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Whats Driving Up Home Prices?
Members of the middle class are concerned that they maynot be able to afford a homein the future.
Homeownership for those under 35 and middle-class families has been moving downhill ever since 2008.
Are High Prices Here To Stay?
Unfortunately, this price increase may be a permanent shift, Fortune said.
When inventory gets too high, prices may drop slightly, but not by much.
The real estate market has to reflect the large amount of money printed during COVID.
Its all balancing out right now, he said.
Who Is Hardest Hit?
Those who will struggle the most to afford a home will befirst-time buyersand younger generations, Fortune said.
The ability to buy a home will be slow for [millennials, Gen Z and younger].
Home prices have doubled in the last 10 years.
This has slowed the real estate markets dramatically.
The generations that bought and sold during that time accumulated a great deal of wealth from that period.
The next 10 years are likely to be slow, he said.
What Happens If the Middle Class Cant Buy?
Without that option, middle-class Americans could find it harder to save and build generational wealth, she said.
While renting keeps a roof over peoples heads, it doesnt build equity or a return on an investment.
Over time, that will widen the gap between rich and middle-class families, and not just financially.
The emotional toll of feeling stuck could hit hard, too, she said.
Moreover, high home prices are forcing people to rethink what home means.
She doesnt see these as temporary alternatives but rather shifts toward more flexible, financially sustainable living models.
He favors less government interference in regulating or subsidizing housing.
I believe that the more the government gets involved, the worse our problems get, he said.
If things are left alone to unfold naturally, they will undoubtedly worsen.
Building more affordable housing in urban areas or on public land could also help.
More corporations will own homes and the middle class will suffer for it, Fortune said.
The middle class is directly linked to the health of Americas economy.
Social and economic instability could result if things dont change, Novak said.
Sometimes, buying puts people under even more financial stress.
Keeping debt low and being intentional about loans can free up cash for saving and investing.
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