Reading Between Trend Lines
The Post-COVID Family
Hurdles To Homeownership
Working from home has certainly placed new demands on ‘home.’ Many families have rushed to secure a property in a competitive market, hoping for a quick uptick in equity and unsure when the boom will come back down. But the same conditions have pushed the concept of homeownership farther away for other buyers. While home prices rose to new heights, individual and families everywhere felt the financial setbacks of the pandemic.
So, while interest rates might make monthly home payments attractive, the wealth accumulation needed for down payments, closing costs, and repair funds has been put under COVID-related duress. The following figure included in the UBS report shows home price as a multiple of household income across the last three decades. Clearly, the spike in home prices combined with the pandemic has driven that multiple upward.