Americans looking to buy a home may have to wait as housing costs are expected to remain elevated until 2026 or later, according to a note from Bank of America (BofA) economists published Monday.
Homebuyers are facing elevated interest rates due to sky-high inflation under President Joe Biden and a housing shortage exacerbated by the COVID-19 pandemic that has led Americans to be hesitant to move, according to BofA. As a result, economists at the bank expect home prices to rise a total of 4.5% throughout the course of 2024 and another 5.0% throughout 2025, before easing slightly in 2026.
“The US housing market is stuck, and we are not convinced it will become unstuck anytime soon,” the Bank of America researchers wrote. “We view the forces that have reduced affordability, created a lock-in effect for homeowners, and limited housing activity will remain in place through our…
