Buying a house is becoming increasingly out of reach for many Americans, which is slowing down the strengthening housing market.
There’s been an inventory shortage across the country for some time, Bloomberg reported, which is pushing up prices. However, with wages going up at a much slower rate, the number of Americans who consider buying a home a good idea in the current conditions has dropped to a six-year low, the University of Michigan’s latest consumer sentiment survey shows.
“There’s a continuing misalignment between home-price growth and people’s income or wage growth,” said Lawrence Yun, chief economist at the National Association of Realtors, according to Bloomberg. “At some point, it’ll potentially choke off buyers.”