Economists' Outlook

Housing stats and analysis from NAR's research experts.

Monthly Housing Affordability Index

At the national level, housing affordability is still very high thanks to lower mortgage rates in spite of higher home prices. What is affordability like in your market?

  • In spite of reduced affordability from last month and last year’s near-record levels, the median income U.S. family earns almost double what is needed to purchase the median priced home, so affordability remains high.
  • Housing affordability is down for the month of March in the U.S. as rising incomes were not enough to completely offset higher mortgage rates and home prices from February to March.
  • From one year ago, affordability is down as lower mortgage rates and higher incomes have not completely offset home price gains.
  • By region, affordability is down from one month ago in all regions except the Midwest, where there was no change. From one year ago, affordability is higher in the Northeast and Midwest and lower in the South and West as huge home price gains overwhelmed slightly lower mortgage rates.
  • Check out the full data release here.
  • The Housing Affordability Index calculation assumes a 20 percent down payment and a 25 percent qualifying ratio (principle and interest payment to income). See further details on the methodology and assumptions behind the calculation here.

Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.

Advertisement

Comment Policy

The opinions expressed in reader comments sections on this website are those of the reader and not NAR or REALTOR® Magazine.

About Economists' Outlook

Visit this blog daily to see what NAR experts are saying about the economy, the housing market, and other factors that will impact your business.

Housing Minute

Housing Minute is a monthly video series highlighting the latest housing data from the National Association of REALTORS® in a minute or less.