The Double Trouble of the Housing Market
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Home prices continue to rise to record highs, eroding affordability. Since 2019, home prices rose nearly 30 percent. As a result, a typical home is about $80,000 more expensive than pre-pandemic. Meanwhile, inventory of homes for sale dropped significantly in the last couple of years, reaching record lows in 2021. In fact, there was a housing shortage even before the pandemic hit in 2020.
So, "two troubles" are happening simultaneously: record high home prices and record low inventory. NAR Research and Realtor.com® partnered to do an analysis of affordability at different income levels for all active inventory on the market.
- Metro Area Affordability Data for December 2019
- Metro Area Affordability Data for December 2021
- Metro Area Affordability Data by Race for December 2021
For more information, check out the REALTORS® Affordability Distribution and Curve Score.