The Associated Press
Despite tipping more in favor of buyers, the housing market is likely to remain unaffordable for many Americans. The median U.S. home sales price has jumped 53% over the past six years, far outpacing wage growth.
And while the inventory of previously occupied U.S. homes climbed last month to the highest level since September 2020, it’s still well below pre-pandemic era levels and short on properties that most Americans can afford.
Before the pandemic, households earning $75,000 a year could afford to buy nearly half of all homes on the market nationally. As of March, only 21.2% of home listings were affordable, according to a recent analysis by the National Association of REALTORS®. A home is considered affordable if monthly payments don’t exceed 30% of household monthly income.
“Without a significant boost in housing inventory at price points below $260,000, the path to homeownership will remain blocked for millions of Americans who are otherwise financially ready to buy,” according to the NAR report.