Home Affordability a Growing Challenge
Homebuyers at many income levels could find that the number of listings on the market within their price range is inadequate in the coming months, suggests the REALTORS® Affordability Distribution Curve and Score, a new monthly research initiative jointly managed by NAR and realtor.com®. This tool measures housing affordability at different income percentiles for the active inventory on market. The Distribution Curve show how many houses, in each state,are affordable to households ranked by income while the Distribution Score represents affordability for all different income percentiles in a single measure.
"Home prices have ascended far past wage growth in much of the country in recent years because not enough homeowners are selling and home builders have not boosted production enough to meet rising demand," said NAR Chief Economist Lawrence Yun in a news release issued by NAR. “…buyers aren't exaggerating about the imbalance. Amidst higher home prices and now mortgage rates, households with lower incomes have been able to afford less of all homes on the market last year and so far in 2017.”
Click here for more information about the REALTORS®Affordability Distribution Curve and Score tool, including data and methodology.