Over the past few years, U.S. home prices have skyrocketed while wages have not kept up, making homeownership increasingly out of reach for many Americans. The COVID-19 pandemic has exacerbated this trend, with home prices rising by 47% since 2020. In many metro areas, buyers now need an annual income of over $100,000 to afford a median-priced home, compared to just 11% of markets in 2021. This affordability crisis has disproportionately impacted Black and Hispanic renters, with only a small percentage able to afford the monthly payments on a home. Rising property taxes, insurance rates, and a housing shortage have also contributed to the housing crunch. The situation has led to record-high rental prices, further straining the housing market. While some relief is seen in increased construction, experts warn that high costs and limited affordability are likely to persist, risking another period of rapid price increases.