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NAHB: Affordability at Lowest Point Since Recession

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In the second quarter of 2022, only 42.8% of median-income Americans could afford a median home. This is down sharply from her 56.9% in the first quarter.

WASHINGTON – In the second quarter (2Q) of 2022, rising mortgage rates, high inflation, low inventories and rising home prices pushed home affordability to its lowest point since the Great Recession. .

According to the National Association of Home Builders (NAHB)/Wells Fargo Home Opportunity Index (HOI), only 42.8% of new and existing U.S. homes sold from early April through the end of June were homes with an average U.S. income of $90,000. – Sharp decline from 56.9% of homes sold in Q1.

“Rising housing costs due to rising interest rates, supply chain disruptions and persistent shortages of construction workers are having a dramatic impact on home prices,” said NAHB Chairman Jerry Conter. . “To keep housing costs down, we will ultimately need to build more homes, making it easier to increase production in the more affordable small and medium market.”

NAHB Chief Economist Robert said: Dietz.

Nationwide median home prices soared to a record high of $390,000 in the second quarter, surpassing the all-time high of $365,000 set in the first quarter, according to the HOI.

Meanwhile, average mortgage interest rates increased 1.47 basis points in the second quarter to 5.33% from an average rate of 3.86% in the first quarter. This is the largest quarterly mortgage rate hike in the history of his HOI series dating back to 2012.

Lansing, Michigan – East Lansing, the most affordable housing market in the United States with a population of at least 500,000, accounted for 85.2% of all new and existing homes sold in the second quarter, with an average income in the region of $89,500 was affordable for my family.

Elmira, New York was the most affordable small market in the country. In Elmira, his 91.8% of homes sold in the second quarter were affordable for his family with a median income of $77,900.

For the seventh consecutive quarter, the top five most affordable housing markets (both large and small) were all in California. Los Angeles-Long Beach-Glendale, California was the leading affordable housing market in the country. Only 3.6% of his homes sold in the second quarter were affordable for his family, whose median income in the area is $90,100.

Salinas, California leads the list of affordable small markets, with just 5.3% of new and existing homes sold in the second quarter being affordable for families with a median income in the region of $90,100. was sold at

most affordable housing market

Top 5 affordable housing markets

  1. Lansing – East Lansing, Michigan
  2. Indianapolis-Carmel-Anderson, IN
  3. Toledo, Ohio
  4. Harrisburg – Carlisle, Pennsylvania
  5. Scranton Wilkes Barre, Pennsylvania

Top 5 Affordable Small Housing Markets

  1. Elmira, New York
  2. Cumberland, Maryland – West Virginia
  3. Wheeling, West Virginia, Ohio
  4. Utica Rome, New York
  5. Illinois Iowa Davenport Moline Rock Island

Most Affordable Major Housing Markets (All California)

  1. Los Angeles – Long Beach – Glendale
  2. Anaheim – Santa Ana – Irvine
  3. San Diego – Chula Vista – Carlsbad
  4. San Francisco – San Mateo – Redwood City
  5. San Jose – Sunnyvale – Santa Clara

Most Affordable Small Home Market (All California)

  1. Salinas
  2. Napa
  3. San Luis Obispo – Paso Robles
  4. Santa Cruz Watsonville
  5. Santa Maria – Santa Barbara

© 2022 Florida Realtors®

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