Rising home prices and shrinking inventories are pressing on affordability, the National Association of REALTORS® reports. Home buyers are struggling to find a home to buy—and one they can afford.
The share of homes available and affordable for a household earning $100,000 has fallen considerably over the past two years, NAR reports. In October, home prices climbed 13% while housing inventories fell 12% compared to a year ago, NAR reports.
“Due to weaker affordability and lower inventory, there are 503,000 fewer homes available for sale that this household can currently afford to buy compared to two years ago,” Nadia Evangelou, NAR’s senior economist and director of forecasting, writes on the association’s Economists’ Outlook blog.