Earlier this week, the Case-Shiller Composite-20 Home Price Index hit yet another all-time high—the 22nd consecutive month of record-breaking prices. This index, which tracks home prices in 20 major U.S. cities, paints a clear picture: homeownership is becoming increasingly unattainable.
13 out of 20 cities in the index are at all-time highs, a discouraging reality for millions of Americans hoping to buy a home.
To put things in perspective, home prices would need to fall 34% just to return to pre-pandemic levels from early 2020. That’s the same magnitude of decline seen during the Great Recession, when the housing market was in total collapse.
The takeaway? A meaningful drop in prices would require an economic event of crisis-level proportions—something no one should be rooting for. With mortgage rates still elevated and inventory constrained, affordability is unlikely to improve anytime soon.
The question remains: How does this cycle break? What policy shifts or market forces could restore balance to housing affordability?
