From Fortune:

In 2023, the housing market faced stark divisions between haves and have-nots, causing winners and losers. Homeowners benefitted from increasing equity and lower mortgage rates, while first-time buyers and renters struggled with affordability and limited supply. Existing home sales dropped to the lowest level in over a decade, while new home sales surged, closing the price gap with existing homes.

As a result of the pandemic, the housing market was influenced by historically low interest rates, but inflation and the Federal Reserve’s aggressive interest rate hikes caused mortgage rates to soar, leading to a decline in existing home sales while new home sales rose. However, this has led to a significant divide between homeowners and renters, with little hope of improvement in 2024.

In the mortgage market, longtime homeowners have benefitted, with almost 40% having no mortgage at all, while the rental market has softened but rents remain high, making it difficult for renters to transition into home ownership. All-cash buyers are at a nine-year high, while entry-level buyers struggle with affordability. The divide between homeowners and renters is not expected to improve in the next year.



Read more: 2023 was a new American era of housing haves and have-nots