Latest news with #Case-ShillerU.S.NationalHomePriceIndex
Yahoo
6 days ago
- Business
- Yahoo
Oxford Economics says the crumbling housing market will continue deteriorating because of two key factors
The housing market continues to struggle with nearly high mortgage rates and home prices, driven by years of undersupply and slow home construction. Builders face higher costs and labor shortages, and home price growth is expected to slow this year as sellers pull homes off the market. If you thought the housing market was bad enough: Buckle up. Mortgage rates are still nearly 7% and home prices are 55% higher than they were at the beginning of 2020, according to the Case-Shiller U.S. National Home Price Index. Housing inventory is slightly rising overall, but it's not doing so by nearly enough, a May report by the National Association of Realtors and shows. And an analyst note published this week by Oxford Economics said the housing market will continue to deteriorate this year. 'The supply of existing homes for sale is approaching pre-pandemic levels as a combination of high prices, elevated mortgage rates, and concerns over the labor market keep buyers sidelined,' Oxford Economics analyst Matthew Martin wrote in a note titled Recession Monitor – Real test for economy is just beginning. 'The new-home market is also being challenged, with builders continuing to offer incentives including price cuts in an effort to move unsold inventory.' Oxford Economics researchers also noted sellers will have less ability to pass along price increases. In other words, sellers will keep pulling their homes off the market if they can't get a sale price they think they deserve. Meanwhile, homebuilders will continue to face higher costs due to tariffs and a reduced labor force because of fewer immigrants and more deportations, according to Oxford Economics. This, in turn, will slow housing starts—a.k.a. new construction—which won't help inventory levels. 'A longstanding lack of inventory has supported both high prices and sluggish sales in the market for existing homes,' Daiwa Capital Markets analysts Lawrence Werther and Brendan Stuart wrote in a note published Wednesday. 'Substantial improvement is unlikely to materialize in the near term until mortgage rates (and/or prices) ease, thereby mitigating the current affordability challenges faced by potential buyers.' Affordability is also hurting builders, who have had to continue offering incentives and price cuts. 'Multiple years of undersupply are driving the record high home price. Home construction continues to lag population growth,' Lawrence Yun, chief economist for the National Association of Realtors, said in a statement. 'This is holding back first-time home buyers from entering the market.' 'We still don't have an abundance of homes that are affordable to low- and moderate-income households, and the progress that we've seen is not happening everywhere,' Chief Economist Danielle Hale said in a statement. 'It's been concentrated in the Midwest and the South.' However, that leads to one small silver lining predicted by Oxford Economics. Due to labor-market concerns and weak demand (thanks to currently high home prices and mortgage rates), they predict home price growth will slow and builders will limit new-home construction. 'Slower home price growth may provide a floor beneath sales,' Martin wrote, but 'household appetites for spending will largely hinge on the health of the labor market.' Despite a struggling housing market, Oxford Economics predicts the U.S. will avoid a recession this year and the Federal Reserve will start to 'cut rates aggressively' at the beginning of 2026. This story was originally featured on
NBC News
21-03-2025
- Business
- NBC News
The salary you need to be considered middle class in every U.S. state
A six-figure household income doesn't necessarily make you rich — in many cases, it just means you're middle class. The upper bound of what's considered middle class for households exceeds $100,000 in every U.S. state, according to a SmartAsset analysis of 2023 income data, the most recent available from the U.S. Census Bureau. The report, which crunched the numbers for all 50 states, is based on Pew Research's definition of middle class: two-thirds to double the median household income. On that measure, Massachusetts has the highest threshold for middle-class salaries, overtaking New Jersey from last year's rankings. A household there needs between $66,565 and $199,716 to be considered middle class, with the upper boundary increasing by nearly $11,000 from the previous report. A six-figure income doesn't go as far as it used to Even as more households earn six-figure salaries, many middle-class earners are feeling the squeeze. While inflation-adjusted wages have risen since 2022, those gains have been largely offset by increasing costs since the start of the Covid-19 pandemic in 2020. Housing and food, in particular, have become more expensive. From January 2020 to December 2024, home prices climbed 52%, according to the Case-Shiller U.S. National Home Price Index, while food prices rose 30%, based on Consumer Price Index data. Over the same period, overall inflation grew 25%. Rising costs help explain why two-thirds of middle-class Americans said they were struggling financially and didn't expect their situation to improve in a 2024 survey from the National True Cost of Living Coalition. Since then, year-over-year inflation has hovered around 3%, still above the Federal Reserve's 2% target but far below its June 2022 peak of 9.1%. But although price increases have slowed, the cumulative effect of the past few years has eroded many Americans' spending power. As a result, a six-figure income may not stretch as far as it once did. Below, see what's considered middle class in your state. Alabama Low end of middle class: $41,471 High end of middle class: $124,424 Median household income: $62,212 Alaska Low end of middle class: $57,748 High end of middle class: $173,262 Median household income: $86,631 Arizona Low end of middle class: $51,538 High end of middle class: $154,630 Median household income: $77,315 Arkansas Low end of middle class: $39,129 High end of middle class: $117,400 Median household income: $58,700 California Low end of middle class: $63,674 High end of middle class: $191,042 Median household income: $95,521 Colorado Low end of middle class: $61,934 High end of middle class: $185,822 Median household income: $92,911 Connecticut Low end of middle class: $61,104 High end of middle class: $183,330 Median household income: $91,665 Delaware Low end of middle class: $54,235 High end of middle class: $162,722 Median household income: $81,361 Florida Low end of middle class: $48,869 High end of middle class: $146,622 Median household income: $73,311 Georgia Low end of middle class: $49,750 High end of middle class: $149,264 Median household income: $74,632 Hawaii Low end of middle class: $63,542 High end of middle class: $190,644 Median household income: $95,322 Idaho Low end of middle class: $49,956 High end of middle class: $149,884 Median household income: $74,942 Illinois Low end of middle class: $53,532 High end of middle class: $160,612 Median household income: $80,306 Indiana Low end of middle class: $46,313 High end of middle class: $138,954 Median household income: $69,477 Iowa Low end of middle class: $47,617 High end of middle class: $142,866 Median household income: $71,433 Kansas Low end of middle class: $46,884 High end of middle class: $140,666 Median household income: $70,333 Kentucky Low end of middle class: $40,741 High end of middle class: $122,236 Median household income: $61,118 Louisiana Low end of middle class: $38,815 High end of middle class: $116,458 Median household income: $58,229 Maine Low end of middle class: $49,150 High end of middle class: $147,466 Median household income: $73,733 Maryland Low end of middle class: $65,779 High end of middle class: $197,356 Median household income: $98,678 Massachusetts Low end of middle class: $66,565 High end of middle class: $199,716 Median household income: $99,858 Michigan Low end of middle class: $46,117 High end of middle class: $138,366 Median household income: $69,183 Minnesota Low end of middle class: $56,718 High end of middle class: $170,172 Median household income: $85,086 Mississippi Low end of middle class: $36,132 High end of middle class: $108,406 Median household income: $54,203 Missouri Low end of middle class: $45,692 High end of middle class: $137,090 Median household income: $68,545 Montana Low end of middle class: $47,198 High end of middle class: $141,608 Median household income: $70,804 Nebraska Low end of middle class: $49,722 High end of middle class: $149,180 Median household income: $74,590 Nevada Low end of middle class: $50,904 High end of middle class: $152,728 Median household income: $76,364 New Hampshire Low end of middle class: $64,552 High end of middle class: $193,676 Median household income: $96,838 New Jersey Low end of middle class: $66,514 High end of middle class: $199,562 Median household income: $99,781 New Mexico Low end of middle class: $41,508 High end of middle class: $124,536 Median household income: $62,268 New York Low end of middle class: $54,725 High end of middle class: $164,190 Median household income: $82,095 North Carolina Low end of middle class: $47,198 High end of middle class: $141,608 Median household income: $70,804 North Dakota Low end of middle class: $51,012 High end of middle class: $153,050 Median household income: $76,525 Ohio Low end of middle class: $45,175 High end of middle class: $135,538 Median household income: $67,769 Oklahoma Low end of middle class: $41,421 High end of middle class: $124,276 Median household income: $62,138 Oregon Low end of middle class: $53,435 High end of middle class: $160,320 Median household income: $80,160 Pennsylvania Low end of middle class: $49,211 High end of middle class: $147,648 Median household income: $73,824 Rhode Island Low end of middle class: $56,642 High end of middle class: $169,944 Median household income: $84,972 South Carolina Low end of middle class: $45,198 High end of middle class: $135,608 Median household income: $67,804 South Dakota Low end of middle class: $47,869 High end of middle class: $143,620 Median household income: $71,810 Tennessee Low end of middle class: $45,083 High end of middle class: $135,262 Median household income: $67,631 Texas Low end of middle class: $50,515 High end of middle class: $151,560 Median household income: $75,780 Utah Low end of middle class: $62,274 High end of middle class: $186,842 Median household income: $93,421 Vermont Low end of middle class: $54,135 High end of middle class: $162,422 Median household income: $81,211 Virginia Low end of middle class: $59,948 High end of middle class: $179,862 Median household income: $89,931 Washington Low end of middle class: $63,064 High end of middle class: $189,210 Median household income: $94,605 West Virginia Low end of middle class: $37,295 High end of middle class: $111,896 Median household income: $55,948 Wisconsin Low end of middle class: $49,749 High end of middle class: $149,262 Median household income: $74,631 Wyoming Low end of middle class: $48,272 High end of middle class: $144,830 Median household income: $72,415
