The Housing Market Just Hit Its Most Grim Milestone Yet

Source: The Street — 

Over the last year, many people interested in a move or a home bought as an investment have scrolled online listings only to find that there’s nothing affordable on the market. U.S. home prices rose by 32% in the last three years while homes that fall below a given area’s median tend to spike even more dramatically, while new inventory is also not being built fast enough.

All this has come together to create a record low when it comes to affordability — according to an annual report by real estate platform Redfin  (RDFN) – Get Free Report, only 21% of the homes on the market in 2022 were affordable for a typical U.S. household.

That number was at two in five (40%) in 2021 and 45% in 2020. At 50%, affordability was highest in 2013 when Redfin first began doing this study.

This Is What Affordability Means When It Comes To Home-Buying