Congress Passes Housing Overhaul as $110,000 Income Still Falls Short of Typical Home Cost
Updated
Updated · KMPH Fox 26 · Aug 7
Congress Passes Housing Overhaul as $110,000 Income Still Falls Short of Typical Home Cost
2 articles · Updated · KMPH Fox 26 · Aug 7
Summary
Congress approved its broadest housing reform package in decades, aiming to lower ownership costs mainly by spurring more home construction through easier project approvals, manufactured-home expansion and zoning changes.
Redfin says buyers now need nearly $110,000 a year to afford the typical home, about $26,000 above the median household income of $83,730, even after the market cooled and price growth slowed.
Mortgage costs remain a major barrier: the average 30-year fixed rate hit 6.69% on Thursday, the highest in more than a year, after years above 6% added hundreds of dollars to monthly payments.
Those same high rates are also constraining supply because owners who locked in cheaper loans are reluctant to sell; Zillow says inventory, though improved, is still 18% below pre-pandemic levels.
The bill targets a shortage of millions of homes that has persisted since the 2008 financial crisis, but builders still face high material, labor and financing costs, and the law's effects are expected to take years.