Part 5/13:
According to Zillow, the number of hours an average American must work to cover rent hit record highs in September 2022, making housing unaffordable for many.
Demand for rentals and home purchases is declining, especially in major metros like Phoenix, Atlanta, and Las Vegas, as affordability becomes a barrier.
Construction and Market Sentiment
Housing starts soared to over 1.7 million units in September, a record high, primarily driven by multi-family projects.
However, the construction cycle has lengthened, and the recent spikes in construction are reminiscent of past crises, such as 2008-2009.
Builder sentiment continues to slump, reflecting waning confidence as higher mortgage rates price out prospective buyers.