Housing and Construction Table 11 National Affordability Index (Third Quarter 2022)
Years
Median Price Existing Single Family Home
Mortgage Rate
Monthly P & I Payment
Payment as % of Income
Median Family Income
Qualifying Income
Composite
2021 Q3 2022 Q3
$361,800 $391,000
2.95 6.18
$1,212 $1,912
17.0 25.9
$85,385 $88,693
$58,176 $91,776
146.8
96.6
Description: • Composite Index measures affordability. An index of 150 means that a family earning the median family income has 150% of income necessary to qualify for a conventional loan covering 80% of a median price single-family home. Analysis: • Increases in both home prices and mortgage rates have dramatically reduced the affordability of homes over the last year. • Mortgage rates have more than doubled from 2021 Q3 to 2022 Q3, increasing from 2.95% to 6.18%. • Median housing prices increased from $361,800 to $391,000 though housing prices peaked in June 2022 at $420,900! • Monthly principal and interest payments for a median price home increased from $1,212 to $1,912! • In 2021 Q3, a family earning the median income had 146.8% of the income necessary to qualify for a conventional loan. That number fell to 96.6% in 2021 Q3. Table 12 Median Home Prices and Home Sales (Third Quarter 2022) Wisconsin Marathon Portage Wood 2022 Q3 % ∆ Yr. Ago 2022 Q3 % ∆ Yr. Ago 2022 Q3 % ∆ Yr. Ago 2022 Q3 % ∆ Yr. Ago Median Home Prices $275,000 10.0 $220,000 10.0 $242,000 5.2 $180,000 9.2 Home Sales 23,706 -14.0 513 -5.2 233 -6.0 285 -14.4 Description: • Above table gives median home prices and home sales for the state of Wisconsin and the counties of Central Wisconsin. • If you list home prices from lowest to highest, the median home price is the one at the half way point. Analysis: • The decline in affordability at the national level is also reflected in the Wisconsin numbers above. • Higher mortgage rates, higher home prices, and lower inventories account for the reduction of home sales in the Wisconsin and Central Wisconsin regions. Table 13 Residential Construction: Stevens Point - Plover Area (Third Quarter 2022) Permits Issued Number of Housing Units Estimated Value of New Homes (x1000) Alteration Permits Issued Estimated Value of Alterations (000)
2022 Q3
2021 Q3
2022 Q3
2021 Q3
2022 Q3
% ∆ Yr. Ago
2022 Q3
2021 Q3
2022 Q3
% ∆ Yr. Ago
25
20
26 $9,062.89 36.0
450
474
$4,152.36
7.2
37
Description: • The above provides construction figures for both new homes and residential alterations. The above estimated values are in thousands of dollars. Analysis: • The number of newly constructed housing units in third quarter 2022 increased to 37 compared to 26 in Q3 2021 with the estimated value of new homes increasing by 36% over the same period. • The number of residential alteration permits and estimated value of alterations didn’t change appreciably in Q3 2022 when compared to Q3 2021.
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Center for Business and Economic Insight
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