The median purchasing power for families has plummeted to $356,273 as of August 2023, down from $689,091 in summer 2020. Rising interest rates have made monthly mortgage payments much more expensive - the average payment was $1,100 in December 2020 but is now over $2,000. Housing supply remains tight, pushing up prices further. Pending home sales are down 13% year-over-year according to real estate company Redfin. The shortage is most severe in homes affordable for middle-income buyers, per the National Association of Realtors.