The intertwined complexity of Burke housing

In the pages of The Paper this week and next, we examine the past, present, and future of Burke County real estate and its impact on local residents and the economy. The graphic accompanying this series features a magnifying glass. That’s because our reporting goes beyond what is easily visible.

The stories represent months of planning, research, and interviewing — all to draw a fuller picture of the housing landscape and examine possible solutions.

The U.S. housing market has shifted dramatically in recent years with huge swings in interest rates, home prices, and availability. COVID instigated many of the changes. More Americans began working from home, which in many cases meant they could work from anywhere. People moved to other cities or states to be closer to family or simply to experience a different area of the country.

Interest rates dropped to historic lows, 2.65% in January 2021. That drop, coupled with high demand and lower inventory, has led to higher home prices. Interest rates began spiking during the economic recovery post-pandemic. Historically, higher interest rates have pushed home prices lower. That’s not happening today. Home prices have remained steady despite the current interest rate of about 7.48% on a 30-year fixed mortgage. While high, the interest rate has trailed the 10.13% seen in the early 1990s, but it’s important to note that home prices were proportionately lower then.

The housing situation cannot be explained away with mortgage rates and home prices, however. The problem includes the intertwined complexity of supply chain issues, worker shortages, employment opportunities, and wages that don’t support the cost of owning a home.

Exacerbating the housing dilemma is the cost of renting. Decades ago, people rented an apartment or house while saving money for a down payment on a home. Back then, monthly rental rates were less than average mortgages. That’s no longer true. Escalating rental rates make that impossible now. Monthly rent is often as much as a mortgage, making even a rental out of reach for many.

There are no easy answers. Throughout the stories in this series, you’ll hear from realtors, lenders, nonprofit leaders, buyers, and sellers. We want to add your voice to the conversation. Send us your letters or commentary about housing in general or your personal experiences in buying, selling, or trying to find a home. A collective discussion is the first step in crafting possible solutions.