Home prices have jumped nearly 50% over the past four years. The sharp price increase has made purchasing a home next to impossible for some new buyers.WASHINGTON — The Biden administration announced new steps to increase access to affordable housing as still-high prices on groceries and other necessities and high interest rates have promoted the new investments on Monday during a visit to Minneapolis.
Both homebuyers and renters are facing increasing housing costs that skyrocketed after the pandemic. According to the Case-Shiller 20-City Composite Home Price Index, home prices increased by 46% between March 2020 and March 2024. A new Treasury analysis shows that over the past two decades, housing costs have been rising faster than incomes.
But increased housing costs have some economists predicting the crunch may not end until the Federal Reserve lowers its key interest rate, which remains at 5.3%.