Outlook for Housing Affordability Turns Sharply Negative in 2022Q4
Housing Affordability Goes South
According to the latest results from the National Association of Home Builders (NAHB) Housing Trends Report (HTR), a research product created by the NAHB’s Economics Team, home buyers’ outlook for housing affordability turned sharply negative in 2022Q4. A record high of 87% of prospective buyers reported being able to afford less than 50% of the homes for sale in their markets. The remaining 13% can afford the majority of homes available, less than half the 31% who could during 2022Q3.
According to the HTR, affordability expectations between Q3 and Q4 of 2022 deteriorated in all regions. The share of buyers able to afford than half of the homes available in their markets rose in the Northeast from 66% in Q3 to 89% in Q4. Similarly in the Midwest, it went from 83% to 85%; in the South from 77% to 83%; and in the West from 58% to 87%.
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