Mortgage unaffordability is just one slice of America's housing crisis:The rise of remote work since the start of the pandemic gave those with higher incomes the flexibility to move just about anywhere. That's led to markets all over the country experiencing an influx of wealthier buyers, and higher housing prices as a result.
Cities on the coasts routinely top lists of the least affordable places to live in the U.S., and that hasn't changed. The Fed's report notes that eight of the country's 10 least affordable markets in June 2021 were in California, with the Seattle and New York City metro areas taking the other two spots.
But the pandemic also started pricing people out of typically more affordable places. The greatest declines in affordability year-over-year occurred in metro areas including Boise City, Idaho; Phoenix-Mesa-Scottsdale, Arizona; and Austin-Round Rock, Texas. Median home prices in those three markets increased more than 25% . Those areas still aren't as expensive as New York City or Los Angeles in absolute terms, but locals are being increasingly priced out of their hometowns.
"In most cases, markets with the sharpest decline in affordability had an influx of homebuyers moving from higher-cost markets over the past year," the Atlanta Fed reports.
MakeIt Right so, people can’t afford homes, ok. That’s bad right?