• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Affordability crisis

Redfin noted that 59% of homeowners who responded to the question have lived in their homes for at least 10 years, and an additional 21% have lived in their homes for at least five years.

That may explain why it’s difficult for some of them to buy their own home today: these homeowners have witnessed a dramatic increase in housing prices since their initial purchase.

Redfin observed that the median U.S. home sale price, which it says currently stands at $420,000, has doubled over the past decade.

The brokerage also examined the impact of high interest rates. Referencing Freddie Mac’s 30-year fixed-rate average mortgage rate of 7.1%, announced April 18, Redfin calculated that a median-priced U.S. home would require monthly payments of $2,864. However, if the same home were purchased at a 4% mortgage rate, the monthly payment would be approximately $650 less.

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

Trapped homeowners

If someone purchased a home when prices and interest rates were low — and its value has since skyrocketed — you would think they’re in a strong financial position. However, according to Redfin senior economist Elijah de la Campa, rising home prices can be “a double-edged sword.”

“On the one hand, Americans who already own homes benefit from rising values and they can consider themselves lucky they broke into the housing market while they could still afford it,” he explained. “On the other hand, price appreciation makes the prospect of buying a new home daunting or even impossible for many people who want to move.”

He added that home prices have increased to the point where a similar home in a similar location would now be considerably more expensive than a home someone already owns, even after accounting for inflation. When you factor in higher mortgage rates, upgrading to a larger, more desirable home becomes significantly more expensive and potentially unaffordable.

In other words, being unable to move or upgrade can be a problem for homeowners whose properties have appreciated in value.

For those who do not own a home, the situation is even more challenging. Redfin’s research also revealed that 38% of renters in the U.S. don’t believe they’ll ever own a home, a substantial increase from 27% less than a year ago.

Real estate developers have taken note of the trend and are responding to the new market dynamics. At least one developer is building apartment complexes specifically designed for "forever renters," including those earning over $150,000 a year.

But even renting can be a burden to many. According to a report from Harvard’s Joint Center for Housing Studies, more than 50% of American renters were considered cost-burdened as of 2022. Anyone who spends more than 30% of their income on rent and utilities falls into this category.


This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.