Houses on top of stacks of coins on table.
©towfiqu ahamed - Getty Images

Higher home prices are having a significant impact on housing affordability, regardless of historically low mortgage rates. Housing affordability has declined compared to a year ago in all four major regions of the U.S., according to the National Association of REALTORS®’ Housing Affordability Index.

“Incomes are coming down from recent highs, and declining incomes with higher home prices is not a good combination for a potential home buyer,” Michael Hyman, a research data specialist for NAR, writes for the association’s Economists’ Outlook blog.

Chart of median family income
©National Association of REALTORS®

The monthly mortgage payment has jumped to $1,184. A year ago, it averaged $1,020, marking a 16% increase year over year, NAR notes. Also, the annual mortgage payment as a percentage of income rose to 16% this April from 13.7% a year ago due to higher home prices and a decline in median family incomes.

Chart of mortgage payments
©National Association of REALTORS®

The West has the highest mortgage payments to income, according to NAR’s data. Home prices in the West recently climbed to a record high of $509,400.

Mortgage payment as a percentage of income
©National Association of REALTORS®
View the full data to see how housing affordability measures up in your local market.
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.