Home sellers in pandemic boomtowns are slashing prices as they adapt their expectations to a rapidly cooling market. People who could suddenly work from anywhere during the pandemic flooded once-quiet housing markets like Boise, Phoenix and Tampa in search of more space and lower housing costs. This demand sent home values soaring. Now, the Federal Reserve’s efforts to tamp down inflation have sent mortgage rates above 5% and pulled the brakes on the housing market. Nationwide, home sales dropped 19% year-over-year in July to the lowest level since the early days of the pandemic. Meanwhile, a jump in apartment construction in the US may help provide some relief — eventually — to renters who’ve faced soaring prices. The construction boom was driven by demand, particularly in Southern cities like Dallas and Miami where many Americans flocked during the pandemic. But other places that were deserted during the worst of the Covid-19 crisis, including New York City, have seen an influx of returns. It’s peak rental season in New York—and in the hottest market in decades, apartment hunters are fed up, frustrated and over budget. —Natasha Solo-Lyons
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