Homeownership dreams becoming elusive for middle-class Americans

New York: The housing market has gone out of reach for some American middle-class people across the nation, especially in the urban areas such as New Jersey and New York City, as mortgage rates have skyrocketed this year as compared to the previous year.

The housing market has been pushed out of reach for some Americans by sky-high mortgage rates. It's never been harder to build wealth in modern times, investors and business analysts say.

The reasons for this unprecedented phenomenon are not far to seek as experts say that it is largely because it has become much harder to buy a home, the "big ticket" to wealth for most Americans.

Less wealthy Americans have also been hit hard by high inflation, high borrowing costs, and meagre wage gains. That led to strikes in the healthcare and automobile sectors, media reports said. Americans have never found it harder in recent times to build wealth owing to sky-high interest rates in the economy, which have spiked borrowing costs and pushed home ownership out of reach for many Americans, the Business Insider said in an analysis of the realty sector.

“An inaccessible housing market spells trouble for those looking to build up their nest eggs, according to BankRate senior industry analyst Ted Rossman. Over the last 10 years, the median US home has appreciated 58 per cent in value, according to Federal Reserve data.

That's not comparable as investing in the S&P 500. The benchmark stock index has appreciated 152 per cent over the past 10 years – but real estate is still a critical part of becoming wealthy, Rossman said, since most Americans have their net-worth tied up in a home.