U.S. Housing Affordability since 1989 Principal & Interest Payment as % of Median Family Income*
Main Factors in Q3 2024 Calculation* 1. U.S. median home sales price: $418,700 2. Prevailing mortgage interest rate: 6.59% 3. U.S. median family income: $101,881
The National Association of Realtors® Housing Affordability Index measures the percentage of median family income required to pay the monthly principal and interest payment of the median priced single-family home in the U.S. Based on purchase with 20% down- payment at the prevailing “effective mortgage rate. ”
28%
2022-23-2024
26%
Interest rates jump ▼
24%
The lower the percentage, the more affordable the housing.
22%
▲ Peak of late 1980’s boom
20%
Subprime bubble
18%
|
1991 – 1999
|
Sept. 2008 markets crash ▲
Foreclosure crisis
16%
14%
Pandemic Boom
12%
Market recovery begins ▲
Updated through Q3 2024
10%
*Data copyright, National Association of Realtors®: https://www.nar.realtor/research-and- statistics/housing-statistics/housing-affordability-index. All rights reserved. Used with permission. Based on quarterly sales of existing single-family dwellings. Last reading market “preliminary . ” Data from sources deemed reliable but may contain errors and subject to revision. All numbers approximate.
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