Homebuyers can't afford it.
Today, the typical American household needs to spend 38% of its gross income on the mortgage costs to buy a house.
That's down slightly from the peak affordability crisis in 2022.
But still near the highest level of the last 40 years.
Such high mortgage cost metrics are due to inflated prices and higher mortgage rates, combined with income growth that hasn't kept pace.
This is why demand to buy is so low today.
Either Americans can't qualify for mortgages, or they don't feel comfortable taking on such high payments.
The key threshold is 30%.
Once the Mortgage Cost/Income Ratio hits that level (through price declines, rate drops, and higher incomes), buyers will come back.
Until then, they will remain on the sidelines.
Lots of regional variation in this metric. Check the data for your city/ZIP on Reventure.
reventure.app/mobile