Home ownership is how most of the middle class builds net worth and stability. It is critical to a thriving middle class. It is also what anchors families to communities and induces them to invest their time and money in their communities.
New data is showing that homeownership is slipping out of reach for many Americans.
Rising home prices and mortgage rates above 5 percent are making houses less affordable in nearly every county in the country, according to real estate data company ATTOM.
The report said the last time affordability metrics were this low was in 2007, just prior to the crash of the housing market in 2008. The crash was driven by the failure of the mortgage-backed securities market, which itself was part of broader predatory lending practices enabled by Wall Street.
In the area where I live in Arizona, we have been on a building boom in the last couple of years, with hundreds of homes being built and many more started.
But in the past 2 months, most houses in the process have stopped being built. Now we have house skeletons.
One home builder is sitting about 50 new houses that they cannot sell.
On the bright side, at least we will have fewer Californians moving here.