Majority Of Homes Affordable At Median Income

The National Association of Home Builders Housing Opportunity Index measures the percentage of new and existing homes that are affordable to families earning their areas’ median income. According to the most recent index, 64.5 percent of homes sold between the beginning of July and the end of September were affordable for a family earning the median U.S. income of $64,400. This is down from 69.3 percent in the second quarter. David Crowe, NAHB’s chief economist, said the more than year-long steady increase in home prices is primarily responsible for recent decreases in affordability. According to Crowe – though affordability has come down from its peak in early 2012 – a family earning the median income can still afford a majority of the homes available in the current market. More here.

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