The Uneasy US Housing Stalemate

Affordability is bad, but a bust is unlikely

Originally published in the Financial Times on January 12, 2023.

Spare a thought for the American first-time homebuyer, for whom things have rarely looked so grim.

US home prices rose 40 per cent during the pandemic. Mortgage rates haven’t been this high in 15 years. Wages are higher, but not nearly enough to compensate for these factors. You can see the…