The Property Brothers identify 'the most significant change' in the current housing market.

• Drew Scott, co-host of The Property Brothers, stated that the housing shortage affects everything, according to him.
• In Q2 2024, the median sales price of U.S. homes was $412,300, as reported by the U.S. Census through the Federal Reserve.
• The Property Brothers stated that purchasing a home, despite high housing costs, is still a wise investment.

The housing shortage is the biggest factor that makes it difficult to buy a home today, according to Property Brother Drew Scott, who spoke at CNBC's Your Money event on Thursday.

""The housing shortage affects everything, including the unhoused problem and the cost of housing," said Jonathan Scott, co-host of a home renovation and design television series."

In the second quarter of 2024, the median sales price of U.S. homes was $412,300, according to the U.S. Census via the Federal Reserve. This is a decrease from $426,800 in the first quarter and from the peak-high of $442,600 in the fourth quarter of 2022, the Fed reports.

In 20 years, no young person will be able to afford a home, according to Jonathan's statement to CNBC.

Why there's a housing shortage

The National Association of Realtors reports that as of mid-2023, there is a shortage of 4 million homes. Due to slow construction of new homes in recent years, more buyers are competing for available homes, resulting in an increase in prices.

Despite recent improvements in housing supply, the underlying constraint in the U.S. housing market remains unresolved.

The number of single-family housing starts in the U.S. increased by 2.7% in September, reaching a total of 1,027,000 new homes that began construction, as per U.S. Census data.

The number of home sellers has increased in the fall due to the "lock-in" or "golden handcuff" effect, which prevented many homeowners from listing their homes because of the low mortgage rates they received from the pandemic.

'It's ok if you wait a few years'

The Property Brothers stated that purchasing a home, despite high housing costs, is still a wise investment.

In Q2 2024, U.S. homeowners with mortgages had a net homeowner equity of over $17.6 trillion, up $1.3 trillion from the previous year, representing an 8.0% growth.

"Jonathan advised, "Consider the long-term perspective. It's acceptable to delay action for a few years.""

With limited options in the housing market, the Property Brothers suggest considering creative solutions, such as buying a home with a family member or friend.