Homes Might Get Cheaper, But Not for Everyone

A shift in the housing market is expected next year. For the first time since the Great Recession, incomes might grow faster than home prices. This change could make buying a home a bit easier for some people. Mortgage rates are predicted to drop slightly, and home prices might not rise as much as they have been. However, this doesn't mean everyone will find it easy to buy a home. Many young adults and families might still choose to live with relatives or roommates instead of buying their own place. This trend is expected to continue growing. More adult children will be living with their parents, and garages might become extra living spaces for them. Homeownership rates for Gen Z and millennials have not improved much. Only about 25% of Gen Zers own their homes, and just over half of millennials do. Many people are struggling with high home prices, mortgage rates, and other costs like insurance and utilities. These factors make it hard for many to afford a home, even if incomes are growing. Experts say that affordability is about more than just the price of a home. It's also about mortgage rates, property taxes, and other living costs. Even if incomes grow, these other costs might not go down. This means that many people might not feel much relief when it comes to buying a home. The housing market is starting to move again after being frozen for a while. Prices aren't rising as fast as they were, but they're not falling either. This could mean that more people might start buying and selling homes again. However, it might still be a long time before the housing market is truly affordable for first-time buyers and young families.