Buying a home in the US is expensive – and that isn’t changing anytime soon

‘We’re at a point in the housing market where we just haven’t been building housing for a long time, so there’s just no adequate supply.’ Photograph: Tom Holt/Alamy

After an intense two-year buying frenzy during the pandemic, the once-hot US housing market has started to cool.

The US Federal Reserve set interest rates to its highest level in over a decade, and mortgage rates are sitting well above 6% for a 30-year fixed rate. The effect on the housing market has already started to show: the National Association of Realtors reports existing home sales in May were down 20% compared with a year earlier. And the median home sales price in May was $419,103, according to real estate company Redfin, a 3.1% drop compared to last year.