Are the young being squeezed out of today's Housing Market?

I heard a news report the other day that suggested home prices have risen so dramatically in recent years that young people are now being priced out of the home market like never before. I am curious if you agree with this assertion or are personally experiencing this situation. Please send a comment as I and fellow readers are interested in your feedback.

Though I agree home prices have risen in recent years, I'm not so sure that the real/total cost of owning a home has changed so dramatically. Intereste rates have been at record lows for the past 2-3 years which I would guess have offset the high home prices. In addition, wages have continued to increase at healthy levels during the past few years - at least for those who have not lost their jobs.

Also, as far back as I can remember home prices have consistenly risen and sometimes quite dramatically. Somehow during these times, new homes were built and people bought them. With new home starts still continuing to climb, I am suspicious of this news report's assertion. Is this a real fact or just more fluff reporting?

Leave a comment as I would like to hear your views.