You had housing questions. An economist answered them.

What It Covers

Redfin chief economist Daryl Fairweather explains why US existing home sales sit near record lows, with 30-year mortgage rates at 6.58%, and addresses buyer lock-in, supply shortages, and housing as a long-term investment.

Key Questions Answered

• •Mortgage Lock-In Effect: Sellers with pandemic-era low-rate mortgages refuse to list because trading up costs roughly $1,000 more per month for an equivalent home at today's rates, shrinking available inventory and preventing prices from correcting downward as they normally would.
• •NIMBY-Driven Supply Shortage: Local homeowners—disproportionately retired, with free time to attend city council meetings—have blocked dense housing development for 10–15 years in high-demand job markets, directly causing the 1.5–several million home shortfall driving current unaffordability.
• •Sunbelt as a Case Study: Markets like Austin, Arizona, and Florida, which limit local veto power over new construction, saw prices fall and affordability improve after pandemic-era building booms, demonstrating that pro-development zoning policy produces measurable price relief.
• •Homeownership as Forced Savings: Buying a home functions as an automatic wealth-building mechanism for people who struggle to invest consistently, since mortgage payments build equity passively—though pairing renting with disciplined 401(k) contributions can replicate equivalent wealth accumulation.