Americans are starting to get worried about the 'new housing crisis'

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Americans are catching on to the rise in home prices.

The gap between the demand for new homes and the supply coming onto the market, which we've dubbed "the new housing crisis," has caused prices to soar and priced out many first-time homebuyers.

In fact, San Jose became the first city in the US to have a median house price of $1 million for a single-family home in the second quarter, according to the National Association of Realtors.

EXPLORE MORE: California city where the average home costs more than $1 million

According to Friday's University of Michigan Consumer Sentiment Survey, people are taking notice of record low interest rates, which could be a reason for the incredibly high number of people who are planning to buy a new home in the next six months.

"Home buying has become particularly dependent on low interest rates, with net references to low interest rates spontaneously mentioned by 48% — this figure has been exceeded in only two months in the past ten years," said the release accompanying the survey.

See the most expensive areas for renters in America:

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20 most expensive areas for renters in the U.S.
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20 most expensive areas for renters in the U.S.

20. Franklin, Tennessee

Metro area: Nashville

Median household income: $94,458

Average rent: $2,534

Source: HomeUnion 

Photo credit: Getty

19. Baldwin Park, Florida

Metro area: Orlando

Median household income: $95,292

Average rent: $2,553

Source: HomeUnion

​​​​​​​Photo credit: Getty

18. Rice Military, Texas

Metro area: Houston

Median household income: $97,546

Average rent: $2,858

Source: HomeUnion 

Photo credit: Getty

17. Chicago Loop, Illinois

Metro area: Chicago

Median household income: $97,645

Average rent: $2,275

Source: HomeUnion 

Photo credit: Getty

16. Lone Tree, Colorado

Metro area: Denver

Median household income: $99,398

Average rent: $3,019

Source: HomeUnion 

Photo credit: Getty

15. Cary, North Carolina

Metro area: Raleigh

Median household income: $99,489

Average rent: $1,979

Source: HomeUnion 

Photo credit: Getty

14. Buckhead Heights, Georgia

Metro area: Atlanta

Median household income: $100,662

Average rent: $2,307

Source: HomeUnion 

Photo credit: Getty

13. Kirkland, Washington

Metro area: Seattle

Median household income: $103,962

Average rent: $2,793

Source: HomeUnion 

Photo credit: Getty​​​​​​​

12. Bryn Mawr, Pennsylvania

Metro area: Philadelphia

Median household income: $104,337

Average rent: $2,889

Source: HomeUnion 

Photo credit: Getty

11. Highland Park, Texas

Metro area: Dallas/Fort Worth

Median household income: $108,973

Average rent: $4,268

Source: HomeUnion 

Photo credit: Getty

10. Corona del Mar, California 

Metro area: Orange County

Median household income: $119,091

Average rent: $5,109

Source: HomeUnion

Photo credit: Getty

9. Rockridge, California 

Metro area: Oakland

Median household income: $120,236

Average rent: $4,670

Source: HomeUnion

Photo credit: Getty

8. Chestnut Hill, Massachusetts 

Metro area: Boston

Median household income: $120,993

Average rent: $4,070

Source: HomeUnion 

Photo credit: Getty

7. Carmel Valley, California 

Metro area: San Diego

Median household income: $126,841

Average rent: $3,988

Source: HomeUnion

Photo credit: Getty

6. Cupertino, California 

Metro area: San Jose, CA

Median household income: $129,371

Average rent: $4,384

Source: HomeUnion

Photo credit: Getty

5. Manhattan Beach, California 

Metro area: Los Angeles

Median household income: $139,898

Average rent: $6,323

Source: HomeUnion

Photo credit: Getty

4. Herndon, Virginia 

Metro area: Washington, DC

Median household income: $142,488

Average rent: $2,462

Source: HomeUnion 

Photo credit: Getty

3. Newport-Jersey City, New Jersey 

Metro area: Northern New Jersey

Median household income: $143,846

Average rent: $2,910

Source: HomeUnion

Photo credit: Getty

2. Financial District/Rincon Hill, California

Metro area: San Francisco

Median household income: $151,879

Average rent: $4,980

Source: HomeUnion

Photo credit: Getty

1. Tribeca, New York

Metro area: New York

Median household income: $204,822

Average rent: $8,762

Source: HomeUnion

Photo credit: Getty

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The read through here is that Americans are beginning to see the writing on the wall that record low mortgage rates may soon begin to rise if the Federal Reserve hikes rates. Therefore, the urgency to buy a home may increase.

While these low rates may spur people to buy houses, they're also making it less likely for people to move. This is drying up the stock of existing homes that could help alleviate the supply crisis and rising prices.

The only issue is, barely anyone is saying that home prices are low.

SEE ALSO: Why are Americans eating out less often?

"In contrast, low housing prices were cited by just 25%, the lowest figure in ten years," said the release.

So you've got people recognizing that interest rates are incredibly low, and that's driving them to buy houses. But they've also recognized that prices are no longer low.

This isn't a direct measure on whether Americans recognize the source of the problem, but at some level it appears they are aware.

Discover the 10 best big cities in the U.S. to buy a home instead of rent:

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10 best big cities in the US to buy a home instead of rent
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10 best big cities in the US to buy a home instead of rent

Tampa, Florida

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Charlotte, North Carolina

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Atlanta, Georgia

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Miami, Florida

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Baltimore, Maryland

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Austin, Texas

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St. Louis, Missouri

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Dallas, Texas

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Philadelphia, Pennsylvania

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Detroit, Michigan

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See Also:
Hong Kong's 'frothy' housing market could become a major problem
The first US city where average homes cost over $1 million
The number of foreclosures in America is at an all-time low

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