THE BIG SPLASH

Middle-class real estate nightmare

What you can’t miss today

The American middle-class is ensnared in a real estate nightmare, with families now only able to afford homes valued at half of what they could have purchased in 2020.

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• The median purchasing power for families has drastically fallen to $356,273 as of August, a stark contrast from its peak of $737,392 in winter 2020.

• This decline occurs amidst a housing shortage and rising list prices, with the latest reaching $446,924 in August.

• Mortgage rates have soared from 2.68% in December 2020 to a staggering 7.63%, leading to an average mortgage payment of over $2,000 a month.

• The housing market's affordability is at its lowest since 2006, with pending home sales down 13% from the previous year.

• Cities like Dallas and Orlando are facing severe property shortages, exacerbated by population growth and limited housing stock.

A SCOOP OF MARKET DATA

The number you should know

34%

Soaring rents and mortgage rates are making homeownership increasingly unattainable for younger Americans, with 34% of Gen Z believing homeownership is impossible in their lifetime, a rise from 27% in 2019

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• Historic highs in rent and escalating mortgage rates are major barriers to homeownership, a key wealth-building step in the U.S.

• The typical age of first-time homebuyers has hit a record 36 years, attributed to challenges in saving for a down payment.

• Older Americans, especially those on fixed incomes, are also burdened by high housing costs, leading to increased homelessness among Baby Boomers.

• The housing shortage in America exacerbates the cost of both buying and renting, although many young renters prefer the flexibility of renting.

A SCOOP OF INSIGHTS

Something you’ll learn

The average monthly mortgage on a new home is now 52% higher than the average rent on an apartment, marking an unprecedented increase due to rising housing prices and interest rates.

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• This significant gap in cost is an all-time high since at least 1996, as reported by The Wall Street Journal, with data from real estate firm CBRE.

• Previously, monthly mortgage payments could be equal to or even less than apartment rents, a trend observed from 1996 to mid-2003.

• The shift is attributed to a combination of high-interest rates, a low supply of housing, and escalating home prices, making home purchases increasingly expensive.

• The rate on a 30-year fixed mortgage recently reached 8%, a milestone not seen in nearly two decades.

• Despite these challenges, experts suggest there is never a "perfect time" to buy a house, indicating potential buyers should weigh various factors beyond interest rates.

A SCOOP OF CONTROVERSY

Everyone will talk about it

A peculiar bathtub design in a Florida home, built and sunken into the bathroom floor, has ignited a spirited debate on TikTok.

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• Real estate agent Haley E. Patterson unveiled the unconventional bathroom feature in a viral TikTok video, amassing nearly 6 million views.

• The elegant bathroom, adorned with marble floors and a gold rectangular-framed mirror, lacks a traditional bathtub or shower.

• Instead, the bathtub is built into the floor, a design that has divided viewers between admiration and skepticism.

• Some viewers appreciate the uniqueness, while others express concerns over practicality and safety.

• The video highlights the diversity in home designs and how unconventional features can be polarizing.

How was today's shake?

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