With a landmark housing affordability bill in political limbo, U.S. home prices have hit an all-time high.
The median price of existing homes in June was $440,660, up 1.8% from $432,700 a year ago, according to new data from the National Association of Realtors (NAR). Home prices have risen for 36 straight months.
“Housing affordability remains low under slowing wage growth and stronger home price growth,” Ershang Liang, an economist with PNC Economics Research, said in a report.
Some other highlights from NAR’s latest housing snapshot:
The latest data underscores the affordability crunch facing many homebuyers. Home prices have climbed for decades, with the only major drop coming during the epic housing crisis that triggered the 2008-09 financial crisis. But costs skyrocketed during the pandemic as the Federal Reserve slashed interest rates to support the economy.
Today, even modestly priced homes aimed at first-time buyers are beyond the reach of most Americans. Fewer than 4 in 10 non-homeowner households can afford a typical starter home priced around $200,000, according to LendingTree. Households need an annual income of roughly $117,000 to afford the average home, real estate firm Redfin has found.
The latest uptick in residential real estate costs comes after lawmakers last month passed the 21st Century ROAD to Housing Act. The legislation would implement a range of policies to lower home prices, including removing regulatory barriers to construction, restricting institutional investors from purchasing single-family homes and encouraging zoning reforms to accelerate homebuilding.
Although Congress approved the bill in a rare show of bipartisan support, it remains hung up in Washington, D.C. President Trump in late June canceled a planned signing ceremony for the measure, saying he would not sign the legislation until lawmakers pass an elections bill known as the SAVE America Act.
The fate of the housing bill remains unclear. Under the Constitution, a bill that has passed both chambers of Congress and has been presented to the president automatically becomes law if he doesn’t sign or veto it within 10 days (excluding Sundays), as long as lawmakers are in session.
