- An acute shortage of affordable homes in the U.S. will continue over the coming year, according to a majority of property market analysts polled by Reuters.
- The shortage is driving prices up faster than inflation and wage growth.
- Annual average earnings growth has remained below 3 percent even as house price rises have averaged more than 5 percent over the last few years.
The latest poll of nearly 45 analysts taken May 16-June 5 showed the S&P/Case Shiller composite index of home prices in 20 cities is expected to gain a further 5.7 percent this year.That compared to predictions for average earnings growth of 2.8 percent and inflation of 2.5 percent 2018, according to a separate Reuters poll of economists.
- U.S. house prices are then forecast to rise 4.3 percent next year and 3.6 percent in 2020.
- READ MORE: https://www.reuters.com/article/us-usa-property-poll/u-s-house-prices-to-rise-at-twice-the-speed-of-inflation-and-pay-reuters-poll-idUSKCN1J20G3
Contrubuted by Bill Burke
President, Deo Adiuvante, Inc.