Why aren’t housing prices in the USA going down, even with economic challenges?
Why aren’t housing prices in the USA going down, even with economic challenges?
Despite ongoing economic challenges, housing prices in the USA remain high for several reasons. First, inventory shortages continue to limit the supply of homes, keeping prices elevated even in tough times. The pandemic exacerbated this issue, with fewer new homes being built and existing homeowners reluctant to sell due to rising interest rates and the low availability of replacement properties. Additionally, many people are still in secure financial situations, especially those with fixed-rate mortgages, making them less likely to sell. Government policies, low interest rates (pre-2022), and demand from millennials entering the housing market have also kept prices relatively stable despite economic headwinds.