Home Affordability Declines During COVID-19 Pandemic

The National Association of Realtors® (NAR) is reporting that since the start of the COVID-19 pandemic, the ability to afford purchasing a home has steadily declined. The NAR’s latest Housing Affordability Index (HAI) report reveals that affordability was on the rise at the start of they until April, at which point it began to decline. The decline in affordability can be traced to median incomes trending lower since April, while the income needed to purchase a home has trended higher as home prices increased. NAR points out that a decline in affordability does not mean that homes are unaffordable. The HAI found that median income levels in all parts of the U.S., were above the required level to afford a median-priced home.