Today’s podcast discusses Housing Affordability and how we should adequately account for it based on how many sales we can have yearly in the United States. For 2020-2024, I had a straight 5-year price growth model, stating that as long as housing only grew at 23% for five years, sales would be ok. Well, as we all know, that didn’t happen, and something that raised alarm bells early in the Covid19 recovery.
In the Summer of 2020, I talked about what should change the housing story, it would be when the 10-year yield can break over 1.94%
At the end of 2021, my price growth model broke, and by March 2022, the 10-year yield broke over 1.94%. That is what we can say is a double whammy; it facilitated the biggest one-year sales crash in U.S. history.
Today’s podcast covers affordability and how we should and shouldn’t think about it.
Every Sunday for HousingWire, we bring out the weekly HousingWire Tracker report, where I take a deep dive into the current and forward-looking housing data lines so you can be up to date with the data lines that matter in housing. If you would like to join HW plus to have access to the tracker, please use my LoganVIP20 code.
“Keep your face always toward the sunshine and shadows will fall behind you” Walt Whitman
Logan Mohtashami is a Lead Analyst for Housing Wire, a financial writer, and a blogger covering the U.S. economy with a specialization in the housing market. Logan Mohtashami, now retired, spends his days and nights looking at charts and nothing else