Currently Reading

Housing Affordability Dips in First Quarter

Advertisement
Affordability

Housing Affordability Dips in First Quarter


May 7, 2021
House exterior
Photo: marls | stock.adobe.com

Housing affordability slipped slightly from the fourth quarter of 2020 to the first quarter of 2021 due to building material costs, supply shortages, and mortgage rate increases, says the National Association of Home Builders (NAHB). The NAHB/Wells Fargo Housing Opportunity Index found 63.1% of new and existing homes sold during the first quarter of 2021 were affordable to households earning the median U.S. income of $79,900. Compared to the fourth quarter of 2020, affordability dipped 0.2%. Both quarters posted the same median home price of $320,000 but the average mortgage rate did increase 11 basis points to 2.96% in 2021 from 2.85%.

Lansing-East Lansing, Mich., was the nation’s most affordable major housing market, defined as a metro with a population of at least 500,000. In Lansing-East Lansing, 91.8 percent of all new and existing homes sold in the first quarter were affordable to families earning the area’s median income of $79,100.

Meanwhile, Cumberland-Md.-W.Va., was rated the nation’s most affordable smaller market, with 97.5 percent of homes sold in the first quarter being affordable to families earning the median income of $60,800.

For the second consecutive quarter, Los Angeles-Long Beach-Glendale, Calif. remained the nation’s least affordable major housing market. There, just 11.6 percent of the homes sold during the first quarter were affordable to families earning the area’s median income of $78,700.

Read More
 

Related Stories

Affordability

Soaring Home Prices Contributing to Economic Crisis

Failure to purchase a home doesn't just lock Americans out of those benefits, it leaves them stuck paying landowners in monthly rent.

Affordability

Starter Homes Are More Affordable Than Renting (in Some Places)

Rents are soaring to all-time highs and rising at a record pace which, after doing the math, has made buying a starter home more affordable than renting in 24 of the 50 largest metro markets, analyzed by Realtor.com

Market Data + Trends

Mortgages Remain Within Affordable Levels Despite Rising Prices

Though home prices continue up, today’s homebuyers are not overextending themselves financially, unlike they did during the Great Recession. A…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

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
Subscribe
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.