Housing Costs Continue to Rise as Sellers Outpace Buyers by 63%

Americans have been voicing frustration over the rising cost of housing. Beyond maintenance and repairs, data from the U.S. Census Bureau and the Department of Housing and Urban Development shows that the median monthly cost of owning a home has reached a record level.

The figures indicate that households are now spending more than $2,100 a month on mortgage-related housing costs, including taxes, insurance, mortgage payments, and utilities. That marks a 3.5% increase from the same period a year earlier, according to Scripps News.

The data also shows that sales of new single-family homes came in at a seasonally adjusted annual rate of 676,000, slipping 0.6% from the previous month’s 680,000 and falling 5.3% from 714,000 in the earlier comparison period.

Redfin reported that sellers outnumbered buyers by 63% in September, the widest gap recorded in at least a decade.

Home Prices Also Moved Higher

Home prices continued to rise as well, with the median price reaching $400,400. That figure was 3.9% above the prior month’s level and 3.9% below the comparable figure from the prior year.

Redfin said the situation is not entirely negative for buyers, because more sellers than buyers gives prospective home shoppers greater negotiating leverage. In fact, it may be the strongest position buyers have had since the 2008 subprime mortgage crisis shook the housing market. Buyers in some Southern metro areas, including Miami, Nashville, and Houston, appear to have the most room to negotiate.

Other Costs Are Rising Too

For many households, higher mortgage payments have meant cutting back elsewhere. Forbes reported that some consumers are reducing nonessential spending, while others are relying more heavily on credit. With interest rates still elevated, borrowing becomes more expensive, which only adds to the pressure.

Economists who spoke with Money.com said the trend may persist for some time.

"Average prices as measured by CPI are up about 30 percent since 2019," Gregory Daco, chief economist at EY Parthenon, told the outlet. "Consumers shouldn't expect prices to return to where they were before the inflation surge, as that would likely require a significant economic downturn and sustained deflation; inflation should cool over time, but that simply means prices rising more slowly, not falling."