Housing affordability

Consumer demands for lower density and more affordable prices fueled a larger share of construction outside urban cores, but recent trends have led to slowdowns across the board.

Although housing costs are still far higher than levels from a year ago, monthly data showed prices declined across five U.S. regions in June, and a separate survey indicated almost one-third of sellers had recently slashed prices.

The slowdown also has not been enough to ease affordability in any state given changes in interest rates and incomes, according to research from First American.

In a reversal of 2021 trends, inventory is increasing and price reductions are occurring across cost levels, though less often among the least expensive homes, according to reports from Zillow and Redfin.

Approximately 8% of listings on the market each week are getting a price cut, while the share of offers facing bidding wars fell below 45% in July, the brokerage's latest report found.

The affordability crisis is expanding as Americans move back to big cities and some areas suffer a housing shortage.

At the same time, homes bought with FHA-backed loans accounted for the smallest share since 2007, according to an Attom sales report.

While housing costs were still up nationwide, Pacific states saw the most rapid pace of moderation on an annual basis, a Federal Housing Finance Agency study found.

Home sales were down by 17% in June, while inventory increased over 27%, compared to numbers from one year ago, according to Remax.