With housing prices rising exorbitantly during the pandemic and homebuying becoming more unaffordable for many people, a reckoning in the housing market could soon occur, according to analysis from Florida Atlantic University real estate economist Ken H. Johnson.
Housing prices and rents have risen so far above their long term trends, or the measurement of where pricing should be for housing, that most housing markets will face some sort of repercussions, his analysis indicates.
“We are in a period now in which both home prices and rents are significantly above their respective long-term trends. In short, millions of Americans should prepare for major repercussions,” Johnson wrote.
