Housing experts generally agree that the current U.S. housing boom will not end anytime soon, but some say that unless there is an increase in wages, housing affordability will become a serious issue.
Zillow’s 2016 housing-market outlook says that “deteriorating housing affordability will drive 2016 housing trends.” Zillow adds that “a lack of affordable homes near city centers will push new and first-time homebuyers to suburbs that feel like walkable, amenity-rich mini-cities.”
The Federal Reserve does see a pickup in the pace of average hourly earnings and business compensation per hour, but according to Federal Reserve Chair Janet Yellen, it’s too soon to conclude that wages would continue to trend higher at a quicker pace.
