If U.S. home prices fell 16%, it’d restore housing market affordability to the long-run average

Want more housing market stories from Lance Lambert’s ResiClub in your inbox? Subscribe to the ResiClub newsletter. We’re currently amid a 14-month streak in which year-over-year nationally aggregated worker earnings growth ( 3.4% YoY) has exceeded year-over-year nationally aggregated home price growth ( 1.3% YoY). This period of housing market softness—with some pandemic boomtowns in the Sun Belt and Mountain West experiencing outright corrections—is helping improve underlying national housing affordability on paper, which became stretched following the overheating during the Pandemic Housing...