A surge in the US affordable housing supply is coming from people who can’t afford their homes

More affordable housing is finally coming back onto the market. The pandemic-triggered housing boom in the US, which saw average prices rise 13.2% over the last year, is finally slowing down.

More low-priced homes were put up for sale in the third quarter of 2021 than any other segment, according to the latest housing report from real estate brokerage Redfin. Homes in the “most affordable” tier, which represents homes priced below 95% of others on the market, rose by 13% compared to a year prior. The affordable listings were up across the US, but the highest...