U.S. home prices went through the roof in 2021
January 03, 2022
These excerpts are from a spot that aired on National Pubic Radio on Tuesday, Dec. 28, 2022. Read the original article.
ARNOLD: Right. I mean, for a long time, first-time homebuyers, things have just been getting harder and harder. So many are getting priced out of the market. And the percentage of first-time homebuyers - that's just been falling to the lowest level in decades when you look at overall sales - what percentage of those first-time homebuyers. And one example, I talked to Steve Peterson, an economics professor at the University of Idaho, and he's been watching what's been happening there in the city of Coeur d'Alene.
STEVE PETERSON: Coeur d'Alene is in the northern part of the state, and it's in part a resort town - beautiful. It sits right on a lake. It's a rapidly growing metropolitan region.
ARNOLD: And he says five years ago, 75% of households in Coeur d'Alene could afford to buy a median-priced home there based on their income - so pretty affordable. But many cities like this have seen an influx of homebuyers - right? - people wanting second homes or buying a house and then remote working, all that on top of just people who live there or are moving there for a local job. So in five years, the median home price in Coeur d'Alene more than doubled to about half a million dollars. And so now only 25% of people, he says, who live there could afford to buy a house at today's prices.
PETERSON: The speed by which this is happening is the most remarkable part. Where housing was mostly affordable five years ago, it's mostly unaffordable today. Read more.
About the University of Idaho
The University of Idaho, home of the Vandals, is Idaho’s land-grant, national research university. From its residential campus in Moscow, U of I serves the state of Idaho through educational centers in Boise, Coeur d’Alene and Idaho Falls, nine research and Extension centers, plus Extension offices in 42 counties. Home to nearly 11,000 students statewide, U of I is a leader in student-centered learning and excels at interdisciplinary research, service to businesses and communities, and in advancing diversity, citizenship and global outreach. U of I competes in the Big Sky and Western Athletic conferences. Learn more at uidaho.edu