Biden’s Legacy: Young People Can’t Afford a Home

A new report in the WSJ shows the collapse in home affordability during the Biden presidency in jaw-dropping charts:

The median price for a starter home rose to $287,000 in 2024, up by about 44% from 2020, according to Cotality. During the pandemic, there was a buying rush, and a shortage of available homes drove up prices. Now, mortgage rates are higher as well.

The income needed to qualify for one jumped to $101,376 in 2024 from $49,008 in 2020, according to a National Association of Realtors analysis.

Rising home values are good news for home owners, but bad news for home buyers. The squeeze on young people happens when prices rise faster than incomes. During the Biden years, we saw close to zero real income gains for the median income household, so fewer families could afford a home.

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