Home prices soar in battleground states: Redfin
A new report from Redfin finds that the typical monthly payment for home buyers in battleground states has nearly doubled since the 2020 election. Redfin’s head of economic research, Chen Chao, appeared on Wealth! to analyze the report and discuss why housing has become unaffordable for many Americans. Chao explains that mortgage payments associated with median-priced homes in battleground states have risen 92% since 2020. “And the reason for that is because home prices have risen more than 40% and mortgage rates have more than doubled in that time, so that’s really what’s driving the increase,” she says. She further adds that median-income American families need to spend 33% of their income to buy a median-priced home, up 22% since 2020. As housing supply gets squeezed, buying a home is becoming much more expensive. While home prices have risen in the past, Chao explains that this increase is different. “Home prices also increased significantly between 2016 and 2020. They also increased by about 40% between 2020 and 2024. But the difference is that mortgage rates did not increase between 2016 and 2020, but between 2020 and 2024 they increased from ultra low rates to high rates of 6-7% today. And that’s what creates the difference between the two periods.” For more expert insights and the latest market trends, click here to watch this full episode of Wealth. This post was written by Melanie Riehl.