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Americans Need to Be Richer Than Ever to Buy Their First Home

The pandemic boom has given way to higher mortgage rates and tight inventory, further squeezing entry-level house hunters.

A real estate agent shows a prospective home buyer a house for sale in Peoria, Illinois.Photographer: Daniel Acker/Bloomberg
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The US housing market has softened a bit after years of soaring prices and frantic bidding wars, but there’s little reprieve for buyers trying to crack into the market.

First-time buyers made up the smallest share of sales on record last year, at 26%, even as home values started to cool, according to the National Association of Realtors. And rising borrowing costs and still-high prices have pushed housing to the most unaffordable levels in records going back almost four decades.