Currently Reading

Chief Economist for National Association of Realtors Predicts Waning Affordability Ahead


Chief Economist for National Association of Realtors Predicts Waning Affordability Ahead

National Association of Realtors chief economist Lawrence Yun says that a market slowdown could be just around the corner

May 6, 2022
House jenga collapse

Housing supply is on the uptick post-pandemic thanks to unwavering demand in a booming housing market, but according to Lawrence Yun, chief economist for the National Association of Realtors, external factors could chip away at that steady progress. Low housing inventory and steadily rising inflation are creating a roadblock for prospective buyers, one that could be big enough to slow the market after years of speedy and competitive home sales.

Not only are monthly payments becoming more expensive, but as the rate of inflation outpaces wage growth across the U.S., buyers are being forced to delay their home purchases. Rates will likely continue to increase into 2023, creating an uphill battle for would-be homebuyers that will extend long after peak buying season, Forbes reports.

NAR calculates purchasing a home is now 55% more expensive than a year ago. Rising mortgage rates and prices hurt affordability, and although wages are improving, Yun says they are “wiped away” due to inflation.

“Wages have risen by 6% from one year ago, and that’s good news,” said Yun. “But inflation is at 8.5%.” He estimates inflation will remain elevated for the next several months and that the market will see further monetary policy tightening through a series of rate hikes.

Read more

Related Stories

Housing Markets

Texas Is Home to More Than One Overvalued Metro

The 2008 housing bubble missed Texas, but the popular Sun Belt state is now home to some of the priciest regional markets in the nation

Market Data + Trends

Housing Inventory Is Falling at Its Slowest Pace in Two Years

April for-sale housing inventory fell at a single-digit year-over-year pace for the first time since the start of the pandemic


Lessons Learned From a Decade of Home-Price Inflation

Years of endless supply constraints are leaving their mark on the U.S. economy, and the housing market is taking the biggest hit


More in Category


Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.