Why Are Houses So Expensive Right Now?
September 16, 2026 by Jamie Forbes

Home prices are high largely due to a long-term housing shortage—an issue stemming from decades of underbuilding.

Strict zoning laws and investor activity are also limiting supply and shaping the market.

A supply-driven feedback loop is keeping prices elevated as buyers and sellers stay on the sidelines.

Affordability is slowly improving, but homebuilding and supply need to increase for the market to return to life.

It’s not a stretch to say these are unprecedented times for the housing market. Home prices have surged nearly 20% over the past five years, hitting a record $409,000 in June 2026, while elevated mortgage rates and a shaky economy continue to complicate the picture.

The impact shows up in monthly costs. Elevated mortgage rates have pushed payments higher, while rising insurance, inflation, and property taxes are adding even more pressure.

These trends have created a slow and expensive housing market that overwhelmingly favors buyers—many of whom are staying on the sidelines. Homes are taking longer to sell, and many Americans can’t afford a starter home. More people are instead choosing to rent, which is now more affordable than buying in every major city, reshaping how people see the dream of homeownership.



So, why are houses so expensive? ... We break down three factors behind today’s record prices, where costs may be headed, and how buyers and sellers can navigate the market.

“It’s normal for house prices to rise slowly over time, but a decades-long inventory shortage, increasing economic uncertainty, and whiplash from the pandemic has made the current housing market historically slow and expensive. It will take a concerted political and industry-wide effort to close the supply gap, bring down costs to a ‘normal’ level, and make homeownership a viable and appealing option for more Americans.”
– Daryl Fairweather, Redfin Chief Economist

Topics

1. America has a severe housing shortage
2. Zoning laws have limited new construction
3. Investors own a larger share of homes

Will house prices fall in 2026?
How to buy and sell in an expensive housing market
Final thoughts

https://www.redfin.com/blog/why-are-hous...expensive/

Duh

Anyone already owning or buying a home is an “investor”.

That’s kinda the thing, right?

Buy some land, build a house on it, put in some indoor plumbing and knock up the Missus.

Why is this so hard to figure out for some y’all’s?

Should it just be a birthright?

If so, be careful and pick your parents right.

Eazzy peazzyy

The answer is illegal immigration.

More lib BS

I must have been in a coma during the time that houses were not expensive.

If you think they are expensive now, just wait until the next Democratic led Inflation Production Act is passed. Vote in Democrats and vote in more taxation.

But, hey, who knew we were rich not paying our fair share.

Reap what you sow.

Houses, transportation, health care, food, utilities.

Lots of families can’t afford any of life's

Instead of facing reality, we borrowed to the hilt and now facing what we refused to face just a few years ago, but now we’re $40 trillion in debt on top of things.

Good thing the Americans voting public has reasonable expectations and is willing to accept reality when it hits them in the face. HA!

#Smack
#RichestCountryOnEarth

(10-10-2026 04:49 AM)BirdHawkEagle Wrote:  The answer is illegal immigration.

That's part of it.

Sent from my Pixel 7 using CSNbbs mobile app

funny how housing prices are down in red states where illegals have been removed, and up in sh*thole blue states.

If you do what Trump says, you get lower prices. If you show your azz and try to "RESIST", you get to pay the stupid tax.

(10-09-2026 11:55 PM)Gitanole Wrote:  Why Are Houses So Expensive Right Now?
September 16, 2026 by Jamie Forbes

Home prices are high largely due to a long-term housing shortage—an issue stemming from decades of underbuilding.

Strict zoning laws and investor activity are also limiting supply and shaping the market.

A supply-driven feedback loop is keeping prices elevated as buyers and sellers stay on the sidelines.

Affordability is slowly improving, but homebuilding and supply need to increase for the market to return to life.

It’s not a stretch to say these are unprecedented times for the housing market. Home prices have surged nearly 20% over the past five years, hitting a record $409,000 in June 2026, while elevated mortgage rates and a shaky economy continue to complicate the picture.

The impact shows up in monthly costs. Elevated mortgage rates have pushed payments higher, while rising insurance, inflation, and property taxes are adding even more pressure.

These trends have created a slow and expensive housing market that overwhelmingly favors buyers—many of whom are staying on the sidelines. Homes are taking longer to sell, and many Americans can’t afford a starter home. More people are instead choosing to rent, which is now more affordable than buying in every major city, reshaping how people see the dream of homeownership.



So, why are houses so expensive? ... We break down three factors behind today’s record prices, where costs may be headed, and how buyers and sellers can navigate the market.

“It’s normal for house prices to rise slowly over time, but a decades-long inventory shortage, increasing economic uncertainty, and whiplash from the pandemic has made the current housing market historically slow and expensive. It will take a concerted political and industry-wide effort to close the supply gap, bring down costs to a ‘normal’ level, and make homeownership a viable and appealing option for more Americans.”
– Daryl Fairweather, Redfin Chief Economist

Topics

1. America has a severe housing shortage
2. Zoning laws have limited new construction
3. Investors own a larger share of homes

Will house prices fall in 2026?
How to buy and sell in an expensive housing market
Final thoughts

https://www.redfin.com/blog/why-are-hous...expensive/

Environmental laws have also made it much more difficult to harvest wood. I know some people who do that. So that has driven up wood prices.

The supply disruptions caused by Covid drove up the prices of nearly everything. And the wars in Ukraine and Iran have driven up energy prices which impacts everything else. That is, of course, without even getting into the inflationary policies of the Biden administration and the Green policies whose goal is to converse energy by driving up energy prices.

But there is a differential. Fast growing areas like Houston and DFW don't have nearly the home inflation of California and New York which have strict zoning and development laws.

Is there even a such thing as a "starter home" now? I remember a long time ago seeing neighborhoods being built that were "starter homes" that were like 900sq ft with a garage to make it look larger. I havent seen any built in a very very long time though. Which makes me believe they stopped building them because people stopped buying them. We have a problem now where kids want to move out of their parents house into something even bigger and better than their parents house. They dont want a 900sq ft house, they want a 3200 sq ft for their very first house but then cry because they cannot afford "500k" houses and all houses cost "500k" etc. They watch too much tik tok and think they are supposed to live in luxury at all times even without doing anything to earn it.

(10-10-2026 10:52 AM)memtigbb Wrote:  Is there even a such thing as a "starter home" now? I remember a long time ago seeing neighborhoods being built that were "starter homes" that were like 900sq ft with a garage to make it look larger. I havent seen any built in a very very long time though. Which makes me believe they stopped building them because people stopped buying them. We have a problem now where kids want to move out of their parents house into something even bigger and better than their parents house. They dont want a 900sq ft house, they want a 3200 sq ft for their very first house but then cry because they cannot afford "500k" houses and all houses cost "500k" etc. They watch too much tik tok and think they are supposed to live in luxury at all times even without doing anything to earn it.

Don't forget about that nice car they have to have.

Depends on the market area, and what is considered a "first home" for buyers. Yeah, a house in the NE or West Coast or in a rapidly growing metro area is going to be higher than other parts of the nation. It's always been that way. Regarding the latter, my first home was a definite "fix-it-upper" that I sacrificed location for affordability. I also qualified for a first home USDA loan because the house was located in a small town. Guess what? After putting in sweat equity and home improvements/repairs over a 7-year period, I sold the house for over $30k more than I bought it. Used the profit toward a bigger, better, newer home. Imagine that! Too many folks try for the newer, bigger house initially and get into a smothering mortgage payment. Learn to live within your budget when young, and it will do you wonders.

One reason houses cost more than in the past is people’s expectations have increased.

For example (per Google):

• 1950 Home Size: About 983 to 1,000 square feet, typically featuring 2 bedrooms, 1 small bathroom, a compact kitchen, and a small or non-existent garage.

• Present Home Size: Around 2,200 to 2,400 square feet, typically featuring 3 to 4 bedrooms, 2.5+ bathrooms, an open-concept floor plan, a pantry, walk-in closets, and a 2-car garage.

My wife lived in a three bedroom home with one full bath (about 1,300 sq ft) with her parents and three siblings and no one considered it sub standard at the time.

I suspect enforcing immigration law will free up millions of units over time and thus increase supply and lower prices.

(10-10-2026 10:52 AM)memtigbb Wrote:  Is there even a such thing as a "starter home" now? I remember a long time ago seeing neighborhoods being built that were "starter homes" that were like 900sq ft with a garage to make it look larger. I havent seen any built in a very very long time though. Which makes me believe they stopped building them because people stopped buying them. We have a problem now where kids want to move out of their parents house into something even bigger and better than their parents house. They dont want a 900sq ft house, they want a 3200 sq ft for their very first house but then cry because they cannot afford "500k" houses and all houses cost "500k" etc. They watch too much tik tok and think they are supposed to live in luxury at all times even without doing anything to earn it.

They make more profit on the bigger homes. The average home size in the 60s was about 1400 SF. Last I saw, it was about 2200 SF. May be bigger now.

(10-10-2026 01:16 PM)Tiger1983 Wrote:  One reason houses cost more than in the past is people’s expectations have increased.

For example (per Google):

• 1950 Home Size: About 983 to 1,000 square feet, typically featuring 2 bedrooms, 1 small bathroom, a compact kitchen, and a small or non-existent garage.

• Present Home Size: Around 2,200 to 2,400 square feet, typically featuring 3 to 4 bedrooms, 2.5+ bathrooms, an open-concept floor plan, a pantry, walk-in closets, and a 2-car garage.

My wife lived in a three bedroom home with one full bath (about 1,300 sq ft) with her parents and three siblings and no one considered it sub standard at the time.

I suspect enforcing immigration law will free up millions of units over time and thus increase supply and lower prices.

Ending all immigration, both legal and illegal will fix alot of the economic problems this country has.

All I can add is our home was built in 1971 @ 1350 sq.ft. 3 Bedrm & 1 1/2 bath. We bought the house in 1991 and it's worth three times what we paid for it, so to say.

FWIW

The average sale price for a home in Wilson County, Tennessee (which is located adjacent to Nashville/Davidson County), was about $280,000 in 2016 (Obama was president at the time), according to data from the Federal Reserve Bank of St. Louis.

In 2026, and per Zillow, the average cost of a home in Wilson County, Tennessee is about $500,000.

If the numbers are accurate, that is a 44 percent hike in 10 years.

In 2024, Wilson County voted 69.4 percent for Trump and 29.4 percent for Harris.

It's not always a red state vs. blue state dynamic. Housing has gotten pricey in many places. I suppose we could blame both parties. Or maybe it is neither party's fault and simply, at least in the Nashville market, a dynamic involving supply and demand.

(10-10-2026 09:55 AM)bullet Wrote:  

(10-09-2026 11:55 PM)Gitanole Wrote:  Why Are Houses So Expensive Right Now?
September 16, 2026 by Jamie Forbes

Home prices are high largely due to a long-term housing shortage—an issue stemming from decades of underbuilding.

Strict zoning laws and investor activity are also limiting supply and shaping the market.

A supply-driven feedback loop is keeping prices elevated as buyers and sellers stay on the sidelines.

Affordability is slowly improving, but homebuilding and supply need to increase for the market to return to life.

It’s not a stretch to say these are unprecedented times for the housing market. Home prices have surged nearly 20% over the past five years, hitting a record $409,000 in June 2026, while elevated mortgage rates and a shaky economy continue to complicate the picture.

The impact shows up in monthly costs. Elevated mortgage rates have pushed payments higher, while rising insurance, inflation, and property taxes are adding even more pressure.

These trends have created a slow and expensive housing market that overwhelmingly favors buyers—many of whom are staying on the sidelines. Homes are taking longer to sell, and many Americans can’t afford a starter home. More people are instead choosing to rent, which is now more affordable than buying in every major city, reshaping how people see the dream of homeownership.



So, why are houses so expensive? ... We break down three factors behind today’s record prices, where costs may be headed, and how buyers and sellers can navigate the market.

“It’s normal for house prices to rise slowly over time, but a decades-long inventory shortage, increasing economic uncertainty, and whiplash from the pandemic has made the current housing market historically slow and expensive. It will take a concerted political and industry-wide effort to close the supply gap, bring down costs to a ‘normal’ level, and make homeownership a viable and appealing option for more Americans.”
– Daryl Fairweather, Redfin Chief Economist

Topics

1. America has a severe housing shortage
2. Zoning laws have limited new construction
3. Investors own a larger share of homes

Will house prices fall in 2026?
How to buy and sell in an expensive housing market
Final thoughts

https://www.redfin.com/blog/why-are-hous...expensive/

Environmental laws have also made it much more difficult to harvest wood. I know some people who do that. So that has driven up wood prices.

The supply disruptions caused by Covid drove up the prices of nearly everything. And the wars in Ukraine and Iran have driven up energy prices which impacts everything else. That is, of course, without even getting into the inflationary policies of the Biden administration and the Green policies whose goal is to converse energy by driving up energy prices.

But there is a differential. Fast growing areas like Houston and DFW don't have nearly the home inflation of California and New York which have strict zoning and development laws.

Not sure about that.

Colleyville TX median sale price in March of 2020 was $593k, the current median sale price is $1.066M. (Picked DFW suburb because I have friends there).

Sunnyvale, CA was $1.510M in March of 2020 and is $1.87M now.

The housing inflation during Covid hit harder in suburban southern cities than the Bay Area.

The country has been flooded with bloodsucking sub80 retards

Its not complicated.