With Covid encouraging city dwellers to move to the suburbs and families looking for home offices and bigger yards, prices for the American dream home have skyrocketed.
Home prices surged in March, up 13.2% from the year prior, according to the S&P CoreLogic Case-Shiller National Home Price Index.
“Everybody expected housing to really sort of dry up with the rest of the economy,” said National Association of Home Builders CEO Jerry Howard. “And in fact, the opposite has happened. People who have been sort of scared out of the cities by the pandemic.”
With homeowners unwilling to sell, a record low supply of homes for sale has forced buyers into intense bidding wars. At the end of April, there were only 1.16 million houses for sale in the U.S. down 20.5% from the year before.
Higher costs for land, labor and building materials including lumber have also impacted homebuilders.
With the 30-year fixed mortgage rate hovering near a 50-year low and strong demand pushing prices to all-time highs, why is the housing supply so meager? Watch the video to find out if the U.S. is running out of houses.
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Subscribe to CNBC PRO: https://cnb.cx/2NLi9AN
#CNBC
source
I’m immigrant I work for construction and the cost for building the simple house three bedrooms one bathroom one room one kitchen is around $85,000 $90,000 but this house is sale for $250,000. That’s crazy.
Look how simple the housing is too. It looks like even an illegal migrant can put it together. This is based upon levittowns. You have to realize that the college professors are still from the 1950s. Everything that is done nationally and probably globally is based upon Levittowns. Pulte is Levit homes. That crap was not supposed to expand forever. Additionally in new jersey they kept remodeling their levit making the huge in comparison to what they were intended. When the architects and planner were designing the streets and lots of those communities they were not expecting the homes to get swole. They weren't expecting the houses to go gym, tan, laundry and take steroids. In addition to that they keep making the developments in general more massive in terms of amount of street. You're diverging from the intent. It wasn't supposed to be a monopoly board where eventually the houses turn into Airbnb hotels. This is nuts.
Keep the corporate home investors out of the family housing market. That's why the prices are outrageous. Look at their profits compared to the family. Families are priced out simply because of greed. An opinion.
If your thinking about selling a home go look at the prices for something comparable. You'll be shocked.
As a small business I purposely have higher prices then my competitors because to some its seen as a better quality for many people its too expensive but for others they easy just pay it the same goes for groceries cars and housing if you really want it or need it you'll pay for it
The housing market is supposed to work in a certain way – people sell their homes to downsize as they age, become empty nesters, or upgrade to support a growing family, and builders construct new homes. These activities create a balanced housing market for both sellers and buyers. However, the current housing market is different. Large corporations such as Zillow engage in market manipulation for profit, Tricon Residential Inc./Blackstone Inc. purchases single-family homes and turning them into rental properties, and ‘Ibuyers such as Opendoor Technologies Inc. purchase and hold houses waiting for prices to increase so they can flip them for profit, among others, heavily influence today's market. Unfortunately, these corporations are negatively affecting home affordability for everyone, including both buyers and sellers. Therefore, our national, state, and local community governments must take into account the harmful effects that these organizations are having on home affordability and the entire economy.
😂😂habbibi come to canada
We are not building enough homes in general but not enough affordable homes. New homes are too large, too complicated, and have too many superficial luxuries that are not needed. Unfortunately, in a profit driven economic system affordable homes do not have the same margins as the luxury ones, so if a builder is just going to build a few, then better off financially with luxury ones.
House in US is expensive? 😂 You must be joking. US housing is one of the cheapest and most affordable country in the world! As an Asian immigrant, I laugh at such news. No, US housing is super cheap. It's called "expensive" because most Americans are bad at peronsal finance and living frugally.
I wish people would realize that a house is a liability not an asset. You can make far more $ investing because your house will only appreciate at the pace of inflation (actual inflation, not what the got reports). On average, that's a difference of 7+% each year- compounded. Do the entire math before buying. Just comparing rest and mortgage is not the full picture and not a meaningful comparison.
*Rent is not throwing money away. You get a place of your choosing, maintenance free, and easy mobility.
I just moved to a new house in 2022 and now I’m getting news I might have to move to Alabama because my Brother’s new Job is in Alabama.
Luckily Alabama is cheaper than Colorado.
I saw some really good houses online larger and cheaper than my House.
American home ownership is more about gatekeeping than anything. It's about keeping certain "undesirables" from becoming middle class. The entire mortgage system is racist, classist and ablelist and needs a complete overhaul.
You will own nothing and you will be happy. Mega wealthy are buying up all the housing.
Ignorance and greed- if you are ignorant enough to pay an overly inflated price for anything most people are greedy enough to take your money!!
omg karens looking for new homes
Hispanics, who arrive absolutely destitute and not speaking any english, outperform blacks economically. But sure, it's all about racism.
Democrats screw everything up
Its because people are. Willung to pay it
I FULLY BELIEVE THIS HAS HAPPENED THANKS TO BIDEN! HE HAS CAUSED SO MUCH IN OUR COUNTRY!
“Impediments to home ownership in particular race” care to provide an example? Nope. Just keep that bs talking point alive.
my parents used to be able to afford a house but now we live in an apartment sadly the landlord are raising the price where would we live 😢
The only ones that can afford to buy are the ones that bought houses in 2020 and 2021 because they were cashed out on insanely overvalued homes allowing them a big enough downpayment on another insanely overvalued home. Those that did not buy overvalued homes at 3 percent interest have essentially been cut out off the market because we received no massive moneybag from selling. The federal reserve destroyed the housing market for decades to stimulate the economy. Wish I knew these repercussions and just bought a house that would then appreciate 200k or more in 3 years smh. This is madness.
Socialism is needed in housing sector. A huge portion of real estate is being held by corporates and billionaires, both in cities and countryside. This drives the prices up and reduces the property availability for people who just want a shelter for their families.
Human over population.
Millennials: I want a 2000 sq ft house, 3 bd, 3 bth, on an acre, in my preferred school district, with two car garage. For $150,000. What do you mean there are no matches?! Capitalism failed! 🙄💩
Buying A House Is Expensive In The United States 🇺🇸 Canada 🇨🇦 And Australia 🇦🇺 It’s Because Of Labor Costs Construction Costs Material Cost And Land Costs The Leads To Hundred Thousands To Millions Of Dollars
Need do all wiring that's 10g for parts update it too 400 amps and add 10g then add labor you see how much that's 50 g for power
Add everything else
Inflation plays a major role why houses are so expensive, Most times it amazes me greatly how I moved from an average lifestyle to earning over $63k per month, Utter shock is the word. I have understood a lot in the past few years that there are lots of opportunities in the financial market. The only thing is to know where to invest…
Why nobody speak about money supply?
Higher cost for labor really we just haven’t gone up and how long labor is not more expensive
notice the guy said the buyer could rent it back to the sellers for a time, this means a renting group bought it, like black rock. Not family owned
Mortage rates low they mark up the price of the home, it called greed and take all the money we make and make it so we cannot get a head
Bs
Visit canada it is worse
The reason there is a shortage of rental housing is because there is no profit to be made in rental housing anymore. The cost of land, materials, labour, and utility bills is too high to be able to charge tenants cheap rent. This is due to SHORTAGES OF LAND, MATERIALS, LABOUR AND ELECTRICITY. We solve this problem by increasing the supply of land, materials, labour, and electricity. We increase the supply of land by rezoning land to allow higher density housing. We increase the supply of materials by manufacturing and importing more building materials. We increase the supply of labour by educating and IMPORTING MORE TRADESPEOPLE FROM CANADA. We increase the supply of electricity by building more power generation stations. If you do those things the price of rental housing will drop and be more profitable for the rental housing owner. Increase the supply to restore the profit motive.
They made it impossible for the average person to buy a house. SMH
Just move to Illnois, the housing market is low here
🤣 Coming from New Zealand this is alot cheaper!
It's all created by real estate builders, just stop buying expensive houses & look for solutions….automatically the rates would crash
Houses in the US are not only expensive, they are UGLY! Even multi-million dollars homes are awful-looking for most. Americans think luxury = big. But these homes have no architectural desirable details, no craftsmanship, no aesthetics, no style, no class, and above all, no personality. They all look the same, for thousands of miles. Everyone has the kitchen, the same bathroom, the same bed, the same living room. Take a $million, go to hundreds of "good" locations in the US, and you get a mediocre boring-looking square box. Take the same amount of money, go to Italy, France, Spain, Portugal, Morocco, Austria, and many other locations, and you get beauty, architectural eye-pleasing details, style, personality, and more.
Homes have become so expensive that buyers have this mentality that they will never be able to pay off their home in their lifetime. So to get an affordable monthly mortgage payment, they are OK with paying ungodly amounts of interest to lenders and not building much equity just to live in a home that fits their wish list. Banks are encouraging the housing market to build large, fancy, expensive homes so they will offer larger loans to make more profit.
The new 2008 is near)
i know one man who attented in friends sereis here😚😚😚😚
I need one
how much is a house in america
Everything will become expensive and capitalism will do more catastrophe on nature and to majority of people before it will be finally decided,capitalism is no longer compatible with society
Capitalism
I live in a old house with a big yard. Surround by new houses. Every vulture in the area has tried to buy my house. They want to tear down my house. And build 4 McMansions in it’s place.
The reason that houses are so expensive today is because the FED kept interest rates low for such a long time. And the government covid money dumped into the economy. The interest rate for homes should have been kept around 5 percent, even through covid. A new 3 bedroom 2 bat should be about 275k to 300k. I just saw a sign for homes starting in the low 700's. Easy money inflated the price of homes and cars.
STOP MAKING HOUSES WITH WOOD, JESUS CHRIST AMERICANS.
It’s amazing that even when single family homes are spread all over America they are too expensive for people to afford. This is why you need cheap affordable housing for most people, if only families buy single family homes then you need a lot less.
Comments are closed.