Report: Housing Costs Up 21% since 2021, Hottest Markets Unaffordable
A report from a website focused on home buying shows the price of housing in the U.S. is soaring — up 21 percent since the start of 2021.
House Method said in a press release on the report that it analyzed data on the 100 largest Metropolitan Statistical Areas (MSAs) and ranked them according to seven factors, including affordability, inventory, and population growth.
The House Method report found that the hot market has not, however, has not put a damper on buyers efforts given various market factors:
The housing market has exploded in recent years due to fluctuating mortgage rates, high demand accompanied by low inventory, as well as remote working opportunities allowing millions to rethink their home base. Americans have begun to rethink their priorities in a living space, many prioritizing space and comfort while others have flocked to bustling metropolises, leading to an exponential increase in home ownership.
House Method’s report highlighted these findings:
- Homes remain on the market for an average of 15 days in the hottest markets, 10 days less than the national average
- The most popular markets are also some of the least affordable
- Home prices are projected to increase another 14.9 percent before 2023, even with steep mortgage rate increases
- The top ten markets rarely remain on the market for more than 15 days, 40 percent less than the national average of 25 days
- Many of the hottest housing markets are also some of the least affordable as demand increases and inventory decreases
- Home equity has skyrocketed, allowing sellers to make huge profits
The report continued:
Our analyses found that Tampa-St. Petersburg-Clearwater, Florida, tops the list as the hottest housing market this year. Homes are sitting on the market for the least amount of time before selling, selling for top dollar, and attracting new residents at a rapid rate. Low inventory combined with a quick sale rate contributed to its high score – and it’s important to note that many of the top spots ranked poorly for affordability.
As these hot housing markets continue to gain traction, we can assume that affordability will continue to dwindle. The other top 5 spots were rounded out by:
Austin-Round Rock, Texas
San Jose-Sunnyvale-Santa Clara, California
The lowest metro area ratings went to Jackson, Mississippi; Bridgeport-Stamford-Norwalk, Connecticut; Greensboro-High Point, North Carolina; McAllen-Edinburg-Mission, Texas; and Winston-Salem, North Carolina.
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