The sense {that a} “rent-forever” financial system is unfolding seems to be to be correct.

In keeping with estimates from the U.S. Census Bureau, the variety of households that hire and likewise make $150,000 or extra in annual earnings went up by 87% from 2016 to 2021, per the Wall Avenue Journal.

This comes after historic lows in rates of interest drove a home-buying frenzy till the Federal Reserve started climbing rates of interest resulting from excessive inflation in 2022.

The 30-year mounted mortgage common dropped in mid-2020 and continued to be low via fall 2021, per the St. Louis Federal Reserve. Then, it started to climb sharply in early 2022, and the Fed started elevating rates of interest in March to curb inflation. Mortgage demand dropped to a file low in March 2023.

All of the whereas, housing prices have continued to outpace earnings. In keeping with an On-line Mortgage Advisor evaluation, housing prices within the U.S., specifically, have outpaced wages. The highest 10 out of 218 international cities seeing the most important drop in housing affordability had been within the U.S.

As one professional informed the WSJ, that is all placing much more strain on renters.

“There are markets which are already robust on lower- and middle-income renters, and it is simply turning into harder with this inflow of higher-income earners,” Whitney Airgood-Obrycki, a researcher with Harvard College’s Joint Heart for Housing Research, informed the outlet.

A number of excessive earners mentioned not with the ability to purchase a house with the WSJ.

“It is not what I envisioned, to be in a two-bedroom condominium with my son,” stated Lee Robbins, an accountant of 36 in Florida, who makes six figures.