Housing affordability has fallen to its lowest level in a decade, with all of the least affordable markets in the state of California, according to data from the National Association of Home Builders.
The organization’s Housing Opportunity Index shows that a mere 42.2% of American families earning $90,000 per year were able to afford new and existing homes sold between the beginning of July and the end of September. Affordability is expected to weaken further as mortgage rates increase.
“The housing market and affordability conditions have continued to weaken throughout the year as rising mortgage rates, supply chain bottlenecks and a lack of skilled construction workers continue to push housing costs higher,” National Association of Home Builders Chairman Jerry Konter said in a statement. “Entry-level buyers are particularly hurt, as more of them are getting priced out of the market.”
The organization has not recorded a lower affordability reading since its analysts began tracking the metric consistently in 2012. The most recent affordability data marks the second consecutive quarterly record low.
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