Some would-be homeowners are being squeezed out of the housing market

Some would-be homeowners are being squeezed out of the housing market

NPR's Leila Fadel talks to Neil Irwin, chief economic correspondent for Axios, about what is causing the hot home-selling season this spring.

LEILA FADEL, HOST:

If you're looking to buy a new home right now, chances are you're struggling. Stiff competition is squeezing out many would-be homeowners and high demand, along with low inventory¹ and high home prices, is making for a chaotic² spring selling season. Joining me now is Neil Irwin, the chief economic correspondent for Axios. Thanks for being on the program, Neil.

NEIL IRWIN: Thanks for having me.

FADEL: So tell us more about what's making this housing market so dysfunctional.

IRWIN: So we have a collision of factors coming together all at once. And unfortunately, they all point the same direction, which is for a frustrating³ experience if you're on the buying side of a transaction. So one is a kind of long-term demographic trend. The millennial⁴ generation - very large generation - is hitting its peak years for - peak ages for homebuying and kind of building a home and life together. You have - also, on the demand side, mortgage rates have risen quite a lot this year. So we're approaching 5% on 30-year fixed-rate mortgages - first time in quite a while. You know, that's actually escalated⁵ in the last just 24 hours, as we've seen long-term mortgage rates rise or long-term interest rates rise in the bond market.

And then on the supply side, you have real problems. Homebuyer - homebuilders are struggling to get the inputs⁶ they need to build more houses, and that includes things like HVAC equipment, appliances, windows, garage doors. And so, you know, should they have a hang-up and can't get something because of these supply challenges that are true across the economy, they can't finish that house and put it on the market. So you combine all those things at once - it's a very hard moment for trying to buy.

FADEL: That's a lot. And why this collision of all these factors right now? Why is it happening now?

IRWIN: So part of it is the same story we see across the economy, which is we have a - you know, job growth, incomes are all rising. At the same time, we have a situation where supply has not come back from the pandemic as quickly as I think we'd all hoped it would. So you have high demand and limited supply across the economy. You see it in cars. You see it in all kinds...

FADEL: Yeah.

IRWIN: ...Of durable⁷ goods like, you know, washing machines. And we certainly see it in housing. It is interesting how all these things are part of the inflation story, including the mortgage rate side of things. Because what's happening on interest rates is the Federal Reserve is trying to raise interest rates, tighten⁸ the money supply. That is, the goal is to reduce inflation in the future. The way they do that is by trying to reduce demand to come more in line with what the supply capacity of the economy looks like.

FADEL: Why can't builders of new homes meet the demand from potential buyers right now?

IRWIN: So part of it is what I was describing...

FADEL: Right.

IRWIN: ...These same kind of supply headaches that we're seeing throughout the economy tied to the pandemic, the reopening, the kind of strains of shipping⁹ networks and all sorts of things like that. There is also this aspect of a longer-term problem, which is the places and localities that are most in demand - where there's the most jobs, the highest incomes - have tended to be very restrictive in what they will let people build. And so at the same time, you have - builders have a hard time finding land where they can build with sufficient density¹⁰. They can't - once they have that land, it's hard for them to get the supplies that - it doesn't prevent them from building, it just slows everything down. And, you know, you can't sell a house without a - without kitchen appliances, without...

FADEL: Right.

IRWIN: ...An HVAC system, without windows. So if even one piece of that mix is hard to get and takes an extra few months, that house stays off the market for another few months.

FADEL: Neil Irwin, chief economic correspondent for Axios, thank you so much.

IRWIN: Thanks, Leila.

1 inventory   

n.详细目录，存货清单

参考例句：

• Some stores inventory their stock once a week.有些商店每周清点存货一次。
• We will need to call on our supplier to get more inventory.我们必须请供应商送来更多存货。

2 chaotic   

adj.混沌的，一片混乱的，一团糟的

参考例句：

• Things have been getting chaotic in the office recently.最近办公室的情况越来越乱了。
• The traffic in the city was chaotic.这城市的交通糟透了。

3 frustrating   

adj.产生挫折的，使人沮丧的，令人泄气的v.使不成功( frustrate的现在分词 )；挫败；使受挫折；令人沮丧

参考例句：

• It's frustrating to have to wait so long. 要等这么长时间，真令人懊恼。
• It was a demeaning and ultimately frustrating experience. 那是一次有失颜面并且令人沮丧至极的经历。 来自《简明英汉词典》

4 millennial   

一千年的，千福年的

参考例句：

• Both Russia and America looked to the future to fulfill their millennial expectations. 俄国和美国都把实现他们黄金时代的希望寄托于未来。
• The millennial generation is celebrating the global commons every day, apparently unmindful of Hardin's warning. 千禧一代显然对哈丁的警告不以为然，每天都在颂扬全球“公地”。

5 escalated   

v.（使）逐步升级( escalate的过去式和过去分词 )；（使）逐步扩大；（使）更高；（使）更大

参考例句：

• The fighting escalated into a full-scale war. 这场交战逐步扩大为全面战争。
• The demonstration escalated into a pitched battle with the police. 示威逐步升级，演变成了一场同警察的混战。

6 inputs   

n.输入( input的名词复数 )；投入；输入端；输入的数据v.把…输入电脑( input的第三人称单数 )

参考例句：

• Uncheck the inputs checked for optimization in the previous stage. 不测试那些已经测试过的优化了的以前步骤的inputs.（变量参数）。 来自互联网
• Just in case, save in a file the inputs obtained at the previous stage. 以防万一，保存以前步骤获得的inputs（变量参数值）到一个文件中去。 来自互联网

7 durable   

adj.持久的，耐久的

参考例句：

• This raincoat is made of very durable material.这件雨衣是用非常耐用的料子做的。
• They frequently require more major durable purchases.他们经常需要购买耐用消费品。

8 tighten   

v.(使)变紧；(使)绷紧

参考例句：

• Turn the screw to the right to tighten it.向右转动螺钉把它拧紧。
• Some countries tighten monetary policy to avoid inflation.一些国家实行紧缩银根的货币政策，以避免通货膨胀。

9 shipping   

n.船运（发货，运输，乘船）

参考例句：

• We struck a bargain with an American shipping firm.我们和一家美国船运公司谈成了一笔生意。
• There's a shipping charge of ￡5 added to the price.价格之外另加五英镑运输费。

10 density   

n.密集，密度，浓度

参考例句：

• The population density of that country is 685 per square mile.那个国家的人口密度为每平方英里685人。
• The region has a very high population density.该地区的人口密度很高。