"Robsinson noted that home prices have skyrocketed while wages and financing options remain stuck in another era. The average home sales price in 1933 was $5,700. The average home sales price of 2025 was around $400,000, Robinson said. Property values have gone up massively in value, but our financial structures are the same. [It's] not shocking at all that affordability is an issue."
"Property values have gone up massively in value, but our financial structures are the same. [It's] not shocking at all that affordability is an issue. He said innovation in mortgage terms could help balance that equation. Maybe let's try pushing out term and see if we can use that, he said. Just do it for first-time homebuyers. I'm fine if you eliminate the boomers and me and everybody else, but we have to come up with a financing structure that helps the first-time homebuyer."
The 30-year fixed mortgage structure originated in 1933 as part of the New Deal. Home prices have risen dramatically while wages and financing options have remained largely unchanged, with an average home price increasing from $5,700 in 1933 to about $400,000 in 2025. Existing financial structures contribute to current affordability problems. Proposed solutions include mortgage innovation such as extending loan terms for first-time buyers and creating a new government-backed financing structure through FHA focused on first-time purchasers. Brokerages can support affordability by promoting alternative housing types, partnering with lenders and local stakeholders, offering longer-term mortgages, tax incentives for sellers, and mortgage-assumption opportunities.
Read at www.housingwire.com
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