Summary
A report by Oxford Economics shows that housing affordability in the U.S. is worse than five years ago. High home prices and increased mortgage rates are major factors making it difficult for many people to buy homes. Only 38% of U.S. households can now afford a home, a drop from 57% in 2020.
Key Facts
- Housing affordability is worse than it was five years ago in the U.S.
- The median income needed to buy a home is $110,100, which is nearly double what was needed in 2020.
- Only 38% of U.S. households have the income necessary to afford a home, down from 57% in 2020.
- Mortgage rates have increased significantly, doubling monthly housing costs for many people.
- The least affordable areas include San Jose, San Francisco, Honolulu, Los Angeles, and San Diego.
- The share of first-time home buyers has dropped to 21%, the lowest on record.
- A national home shortfall of about 1.5 million is a significant issue affecting housing costs.
- High mortgage rates have had a greater impact on affordability than rising house prices.
