Why Today’s Home Prices Feel So Out of Reach
Every week, I hear from buyers wondering how homes can possibly be listed at these prices especially when public sale records show that the same house sold for so much less just 5 years ago. I get it. I struggle with this too. As a real estate professional, watching home prices double in my own market since the beginning of the pandemic has been hard. What used to feel attainable has started to feel like a dream slipping further away.
What Changed in the Last Five Years?
When COVID hit in 2020, the housing market did something unexpected. Instead of cooling off, it caught fire, and home prices exploded. Record-low interest rates, a surge in demand from remote workers looking for more space, and limited new construction created the perfect storm. Prices soared. And even though the market has since cooled slightly from its peak, we are still dealing with a severe shortage of homes.
There are about 4 million too few homes in the U.S. today, according to estimates from the Realtor.com and other leading housing researchers. New construction hasn’t kept pace with population growth for over a decade. Local zoning laws, labor shortages, and the rising cost of materials have all made it harder to build the housing we need.
Middle-Class Buyers Are Feeling the Pain
This crisis isn’t hitting everyone equally. It is our middle-class workers: teachers, police officers, first responders who are struggling the most. Their incomes have not kept pace with housing costs. And now, in many areas, even the average home is out of reach unless you’re earning well above the median salary.
So What Can You Do?
While there’s no easy fix, here are a few things I’ve been recommending to my clients:
Widen your search area. I often suggest looking 30 to 45 minutes outside of your target city. While not ideal, you may find more affordable options with a manageable commute.
Consider smaller or less updated homes. You might not find the perfect house right away. Look for a place with potential or something you can improve over time as your budget allows.
Talk to your family. It’s not always easy to ask, but I’ve worked with many buyers who received help from relatives that they didn’t expect. A gift, a loan, or even co-buying can open doors that felt firmly shut.
Homeownership Still Matters
Despite the challenges, I believe strongly in the long-term value of owning your home. Real estate remains one of the most reliable ways to build wealth over time. Homeowners are consistently in a better position financially when they retire, largely because of the equity they’ve built.
You’re Not Alone
If you’re feeling discouraged, know that you’re not alone. And if you’re looking for guidance, I’m here to help. I can connect you with a trusted real estate agent in your area, or a financial advisor who can help you map out a path to homeownership.
