Home-flation
MONEY | House prices hit record high as inventory dwindles
Associated Press / Photo by David Goldman
![Home-flation](https://www4.wng.org/_1500x937_crop_center-center_82_line/money13_2024-07-08-223928_ttqb.jpg)
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Recent housing data shows buying a house in America is more expensive than ever. The median sale price for existing homes rose to $419,300 this summer even as the number of homes sold declined. Data from the National Association of Realtors shows sale prices in May jumped 6 percent from a year ago to reach the highest price ever recorded, despite inflation easing almost 1 percentage point during the same period. Even though mortgage rates may have peaked, reduced inventory helped force home sales down almost 3 percent compared with the same period in 2023.
Five years ago, the median-income household earned about $78,000 and could afford a monthly mortgage payment even with no money down. Now a similar family often must put down 35 percent of the sale price, or more than $125,000, to afford the mortgage payment on a typical U.S. home, according to Zillow. It’s not surprising that nearly 40 percent of buyers in 2023 used a gift from family or friends to afford their down payment.
First-time buyers are still struggling to get over the threshold. Fewer than 1 in 5 adults under 30 years old owns a home or is married to someone who does, according to John Burns Research and Consulting. The majority of Gen Zers say they hope to own a home but feel it’s out of their reach.
Economic anxiety: A bipartisan problem
Nearly half of Americans feel they are struggling to remain where they are financially and think federal government actions from both parties are hurting, not helping. American families responding to a June survey from Monmouth University said the biggest problems they face are inflation (24 percent), the economy (14 percent), and everyday household bills (11 percent). Republicans and independents are more likely than Democrats to name these financial concerns as having the most significant effect on their families. Democrats, on the other hand, are slightly more likely than independents and Republicans to focus on housing, healthcare, college, and job security as their top concerns.
“Even with a declining inflation rate, prices continue to be much higher than they were four years ago,” said Patrick Murray, director of Monmouth’s Polling Institute. “That’s the metric that has really mattered to many Americans over the past two years.” —T.V.
![Columbia University](https://www4.wng.org/money13a.jpg)
Columbia University Associated Press/Photo by Mark Lennihan
The true cost of college
As college students return to campus, they should study the numbers. Including tuition fees, books, rent, and food, four years of college costs about $308,000 on average. Tuition and fees make up 60 percent of the total at private colleges, and about 32 percent at public colleges with an in-state discount applied. Researchers at Self Financial used 2023 data, the most current available, to determine Columbia University is the most expensive option at more than $500,000. The price of being taught what to think has never been higher. —T.V.
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