From Fortune:

1. The housing market was expected to improve in 2024, but mortgage rates and home prices are now on the rise, locking many first-time homebuyers out of the market. Moody’s Analytics chief economist Mark Zandi says it will continue to be a problem, and that higher prices mean a massive increase in wealth for existing homeowners.

2. Although new housing starts and completions are increasing, the U.S. is still facing a major housing inventory deficit, with an estimated shortage of 1.5 million to 2 million units. This chronic housing shortage is due to years of underbuilding since the Global Financial Crisis, but there is still a significant shortfall in single-family housing stock.

3. The market is going to have to shift eventually to ease the housing inventory problem, according to Moody’s Analytics chief economist Mark Zandi. He believes the key to solving the housing affordability crisis in the U.S. is to increase housing supply, through a joint effort and creativity from both the private and public sector.



Read more: ‘Buying a home is not even remotely possible’ for many Americans, says Moody’s chief economist