The result? Investors and people who already own their homes are doing well.
This isn't entirely true. Increased valuation is only a benefit to those who wish to sell. Otherwise, it is linked to increases in property taxes and insurance. Those items alone will likely keep American housing prices fairly steady if you're hoping to see any reduction of consequence.
The Fed's move toward higher interest is going to mean a shift in the wrong direction for the market as well. As lower-income potential buyers are denied loans due to the higher interest payments the market will adapt by catering to the more qualified buyers with even larger and more feature-rich offerings.
The typical "starter home" is already double the size of its counterpart from the '50s. This is almost entirely a consequence of changes in VA and FHA financing and participation rates. There are also considerable costs that are common to all single-family dwellings that are easier to recover with higher-priced homes.
The “affordable” housing is regularly over $1,000 monthly, has an income cap that requires you to make less than $15 an hour, and has a waitlist of about 18 months, currently. In other words: good luck.
While there is some federal money available to states to help with such funding, for the most part, the states are responsible for setting qualification criteria and benefit levels for low-income supplements. The math has never worked out, especially in red states, for the people the programs were intended to help. This is by design and is part of the abusive and cruel tactic of making workers subservient to employers.
As long as the federal government fails to understand its funding and the state governments see it as an enemy to their ambitions we will never have an effective poverty fix, especially in food and housing. The federal government is the only entity that can create money in the private sector without incurring debt that must be paid back.
The states are only "users" of that money, as are you and I, and are reliant upon tax and fee revenue. It is only the power conflict between the states and the federal government that keeps us from realizing the potential of our sovereign currency and dependent upon bank financing for the lion's share of our economy.
The myths and outright lies surrounding our money and its origin are extremely beneficial to the ruling class and their banks and are responsible for our failing middle class and desperately poor. If we wish to wallow in the relative comfort of those lies we will deserve the economy and failed nation status soon to be our new standard.
