A variety of factors contribute to the rise of unaffordable housing, according to the Pew Research Center. In 2021, interest rates were as low as 2.65%, but by late October 2024, rates had risen to 6.54%. Most homeowners with fixed-rate mortgages are opting to hang onto their low rates. Economists estimate that this “lock-in” led to 1.33 million fewer home sales between the second quarter of 2022 and the end of 2023. Additionally, the construction of entry-level single-family homes peaked in 2004, with 186,000 builds. In 2023, only 87,000 new single-family homes were built.
