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Housing

U.S. Housing Costs Surge, With No End In Sight

Locked out of the supply-constrained home-buying market, more households are crowding the rental market, driving up rents and stressing housing support programs. 

A home for sale in Miami, where housing prices jumped 18.8% in 2021. 

A home for sale in Miami, where housing prices jumped 18.8% in 2021. 

Photographer: Joe Raedle/Getty Images North America

The U.S. housing market shifted into overdrive during the pandemic, with more than 6 million homes selling in 2021 despite skyrocketing prices in many cities. From Miami (18.8% year-over-year increase) and Denver (18.6%) to San Diego (22.4%) and Phoenix (30.2%), it’s a national phenomenon. The median selling price for a home in November, $416,900, was nearly 25% more than it was in February 2020. 

In the early weeks of 2022, there’s no sign that cutthroat bidding and rising prices won’t continue. The total inventory of homes on the market dipped below 300,000 nationwide in early January — less than half of the inventory available before the pandemic.