You had housing questions. An economist answered them.

The U.S. housing market remains in a state of stagnation, driven by record-low sales and high mortgage rates that discourage both buyers and sellers. The "mortgage lock-in effect" keeps homeowners in place, as they are unwilling to trade affordable pandemic-era interest rates for current, more expensive borrowing costs. This supply shortage is exacerbated by widespread NIMBYism, where local opposition blocks dense housing development in high-demand regions. While homeownership has historically served as a reliable wealth-building mechanism, its future as an investment is evolving. Future market dynamics will likely prioritize the personal utility and lifestyle benefits of owning a home over traditional financial returns, especially as population growth trends and the housing needs of aging generations shift the landscape of residential real estate.