As a result of rising mortgage rates and high asking prices, homebuyers are being forced to settle for smaller houses in many U.S. cities.
According to a new survey by real estate company Redfin, the median-size home deemed affordable to buyers with $3,000 monthly housing budgets shrank.
In certain areas, people who might previously have bought a three-bedroom home can now only afford a two-bedroom in the same region.
For a property with the median asking price, the anticipated monthly mortgage payment has climbed by 50% since this time last year.
With a 30-year fixed mortgage and the current 6.7% interest rate, the monthly payment would rise to $2,547 from $1,698 in 2021.
Due to the high mortgage rates, buyers are considering smaller homes.