
For context, this is the highest the figure has been since the Great Recession, when it was 14,923. Using a median new home price of $438,067 and average hourly earnings of $27.32 puts the PI ratio at 16,035.

Perhaps most startling, however, is the price-to-income ( PI) ratios on homes. That is to say, more homes are being built than there are households to buy them.
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Housing starts over the past few years have also substantially outpaced household formation. recorded a 10.4-month supply of new houses, the highest level since 2009. This reflects the fact that many would-be home-buying families are opting to rent instead of committing to a down payment on a house. Furthermore, rent prices are up almost 30% from last year, primarily attributed to single-family rentals. Data from the National Association of Realtors (NAR) shows July home sales fell nearly 20% year-over-year.

With 30-year fixed mortgage rates trending over 6% for the first time since 2008, demand for homes is down substantially from last year’s peak. This has sparked speculation that home prices may be in for a more brutal pullback than many economists projected. housing market may be deteriorating faster than it did in the 2008 recession.
