Real estate costs hit record highs across the country

The high cost of housing is making it difficult for many Americans to make ends meet, and monthly rents are rising faster than wages, according to a new housing report from Harvard University.

The report from Harvard University’s Joint Centers for Housing Studies was released in June.

The annual report says real estate deals are hard to come by right now.

Daniel McCue, principal investigator for the Harvard University Housing Report, says housing prices are currently high and there is not enough supply.

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“Middle- and low-income renters are experiencing a shortage. We have lost over 6 million low-income housing units in the last 10 years,” McCue said.

The report’s lead author said many homeowners cannot afford to move now, even if they wanted to.

Rachel Burkholder said she was looking for a new home in suburban Denver because she wanted to find a larger space to accommodate her family. Burkholder, who is a teacher, said she worked an extra job to afford a new home and inflation had made it difficult to save for a new home.

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“It’s a big challenge because like everything else, prices are going up,” Burkholder said. “I feel like everything you buy in the store has gone up substantially, so learning how to better manage your budget has been a challenge.”

The report says higher interest rates and rising property taxes are partly to blame for high housing costs.

Daryl Fairweather, chief economist at Redfin, said housing costs are rising in nearly every part of the country.

“Initially it was the South that was getting more expensive, we saw a boom and bust in places like Austin, but even the Midwest and Northeast are now seeing rapid growth in prices, home prices and rents,” Fairweather said.

More Americans are living in housing that strains their budgets, the study found.

One in four homeowners spend more than the recommended “30% of income” on housing costs, such as utilities and mortgage payments.

In comparison, paying rent to live in an apartment is even more expensive.

Nearly half of renters spend more than the recommended 30% on rental costs.

Experts add that rental costs don’t appear to be going down anytime soon. So if you can afford it, now may be the time to buy.

“We know we’re going to have to make some sacrifices as a family, but we also know there’s some wiggle room, especially now that there’s not as much competition,” Burkholder said.

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Economists predict that mortgage rates will remain high for most of 2024 and will only begin to decline once the Federal Reserve begins to reduce rates.