Home prices and rents will decline in the next year, on average, though different parts of the country will experience somewhat differing paths. In the aggregate, housing prices will decline for both homeowners and tenants. Before getting too glum, though, homeowners should acknowledge the 45% appreciation they have had, on average, over the last three years. Giving back a bit of that won’t be so terrible. And landlords have increased their rents by 30% in the same period; they can get by on a little less.

On the owned property side, higher mortgage rates pack a very strong punch to the gut of prospective homebuyers. The recent 6.70% mortgage rate pushes monthly payments 54% higher than the 2021 average mortgage rate of 2.96% on the same loan amount. But with higher prices, buyers have to finance more. Thus homebuyers face a double-whammy pushing their mortgage payments up.

On the apartment side, those rising rents exceed other consumer prices, on average, and wage rates are not keeping up. On the positive side, employment has increased, helping those who were jobless a year ago, though a small bit of that is offset by fewer hours worked by time-clock employees. The job gains, though, don’t match the rent increases.

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https://www.forbes.com/sites/billconerly/2022/10/12/housing-forecast-lower-prices-and-less-new-construction/?sh=2d5cf6cf54e7