What's happened
As of September 2024, housing affordability has plummeted in the U.S. and other wealthy nations, with satisfaction rates dropping significantly. High mortgage rates and stagnant construction are key factors driving this crisis, leading to increased homelessness and demographic shifts.
Why it matters
What the papers say
According to Axios, the share of people satisfied with housing affordability in the U.S. dropped from 59% in 2019 to just 39% in 2023. This trend is echoed in Canada, where only 30% express satisfaction. The Financial Times highlights that the OECD reports a general decline in satisfaction across wealthy nations, with only 45% satisfied in 2023. Business Insider UK notes that the urban wage premium is eroding for lower-skilled workers, who now face a penalty for living in cities due to soaring housing costs. This reflects a broader trend where cities are failing to build enough housing to accommodate their populations, leading to increased competition and higher prices.
How we got here
The decline in housing affordability has been exacerbated by rising mortgage rates and insufficient home construction since the financial crisis. OECD data shows a marked decrease in satisfaction with housing availability, particularly in the U.S. and Canada.
Common question
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What is Causing the Housing Affordability Crisis in the U.S.?
The housing affordability crisis has become a pressing issue in the U.S. and other wealthy nations, with satisfaction rates plummeting. Understanding the factors behind this crisis can shed light on its broader implications, including rising homelessness and demographic shifts. Below, we explore key questions surrounding this urgent topic.
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What is Causing the Housing Affordability Crisis?
The housing affordability crisis is a pressing issue affecting millions across the globe. As mortgage rates soar and construction stagnates, many are left wondering about the root causes and implications of this crisis. Below, we explore key questions surrounding this topic to provide clarity and insight.
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