Charlottesville, VA (CVILLE RIGHT NOW) – The U.S. housing market has seen staggering price increases over the past five years, making homeownership increasingly difficult for many Americans. CBS business analyst Jill Schlesinger addressed these concerns, noting, “The median U.S. home price rising by 45% in 5 years. That’s insane. It’s like, just absolutely astounding. And just to put that in perspective, the overall inflation rate cumulatively is up by about 23%. And this is almost twice that.” Alongside soaring prices, mortgage rates have also surged, doubling from around 3.3% to 6.7% in recent years, further complicating affordability for prospective buyers.

Despite these challenges, Schlesinger pointed out a slight shift in the market as more homeowners choose to sell, increasing available inventory. “Home price increases have been slowing down. That is the good news. More people are listing their homes,” she explained. However, she cautioned that buying a home involves more than just the sticker price, emphasizing the hidden costs such as maintenance, property taxes, and rising insurance premiums.

For those unsure about homeownership, Schlesinger highlighted the benefits of renting, citing a young economist who analyzed the financial trade-offs. “She’s like, ‘I’m never buying. I love having the flexibility of renting, and I love having my money work for me.'” While some still view owning a home as a cornerstone of financial stability, Schlesinger reminded listeners that renting can be a strategic choice, allowing individuals to invest their savings elsewhere while avoiding the unpredictability of the housing market.

Listen to the full conversation here: