Affordability Remains at 10-Year Low
Housing affordability held at roughly the same level in the fourth quarter of 2018 as the previous quarter, with a slight interest rate uptick balancing out the minimal home price drop.
Furthermore, the new index data from the National Association of Home Builders (NAHB) reveal affordability remains near a 10-year low. Overall, 56.6 percent of new and existing homes sold in the fourth quarter were affordable for households earning the national median income $71,900, up from 56.4 percent in the third quarter of 2018. The U.S. median home price dropped $5,000 to $263,000 in Q4.
Youngstown-Warren-Boardman, Ohio-Pa. supplanted Syracuse, N.Y. as the nation’s most affordable major housing market. There, 92.7 percent of all new and existing homes sold in the fourth quarter were affordable to families earning the area’s median income of $60,100. Meanwhile, Cumberland, Md.-W.Va. was rated the nation’s most affordable smaller market, with 94.9 percent of homes sold in the fourth quarter being affordable to families earning the median income of $55,500.