New buyers and renters bear the housing squeeze

Sticking with housing, the burden of the housing shortage is falling disproportionately on new buyers and renters, according to a piece last month by Jess Remington. Prior to 2022, new homeowners and existing homeowners paid a similar share of their income to housing costs (~22% for new homeowners, ~20% for existing ones). But since then, the gap has rapidly grown, with new homeowners now paying 26% of income for homes. Meanwhile, renters who recently moved are paying a record high share of their income to rent - 33%. With the typical age of a new buyer slightly over 40, millennials are especially exposed to this trend - possibly that helps explain why they are the generation with the highest levels of economic anxiety.