According to the National Association of Home Builders (NAHB)/Well Fargo Housing Opportunity Index (HOI), housing affordability held steady at its lowest level in nearly a decade. This occurred as higher home prices offset lower mortgage rates to keep the affordability rate flat in Q3 of 2021.
The HOI reports that 56.6% of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $79,900. This is unchanged from the 56.6% of homes sold in Q2 of 2021 and remains the lowest affordability level since the beginning of the revised series in Q1 of 2012.
The HOI also shows that the national median home price increased to a record $355,000 in Q3 of 2021, up $5,000 from Q2 and $35,000 from Q1.
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Housing Affordability Holds Steady but Supply-Side Challenges Persist