Data from the National Association Home Builders/Wells Fargo Housing Opportunity Index shows only 42.8% of homes sold between April 1st and June 30th were affordable for families earning $90K/year, the national median income.
NAHB’s report on the Q2 Index findings cites mortgage rate increases, low inventory, inflation and home price escalation as contributors to what it calls the lowest point for housing affordability since the Great Recession.
NAHB Chief Economist Robert Dietz noted builder sentiment has also declined for seven straight months and that the Association is projecting an overall decline in single-family construction for the year. He urged urgent action on zoning reform and supply chain improvements for building materials to improve production and alleviate demand burdens.
Taking a look at regional affordability, the five most affordable major markets in Q1 of this year were all in Upper Midwest/Great Lakes states. All five of the least affordable major housing markets were located in California, as were all five of the least affordable small markets. (Source)