Home Affordability in the U.S.
Buying a home in the U.S. is currently less affordable than in the last 17 years due to high costs and mortgage rates. Owning a home is still part of the 'American Dream,' but whether it's a good investment depends on various factors like how long you plan to stay. Home prices have climbed significantly over the past five years, driven by the pandemic homebuying boom. Consider your financial situation and needs before deciding whether to rent or buy a home.
Key Points
- Home prices have climbed 47% over the past five years
- Consider staying in a home for more than five years to benefit financially
- Housing shortage in the U.S. likely to keep home values elevated
Pros
- Building equity
- Having a space to call your own
Cons
- Home's value may decrease
- Monthly costs may be unpredictable
- Less flexibility to move