According to the NAHB/Wells Fargo Housing Opportunity Index (HOI) released this week, just 54.2% of new and existing homes sold between the beginning of October and end of December were affordable to families earning the US median income of $79,900.
This is down from the 56.6% of homes sold in Q3 2021 and is the lowest affordability level recorded since the beginning of the revised series in the first quarter of 2012.
Supply-chain bottlenecks that put upward pressure on home prices along with rising interest rates contributed to housing affordability falling to a 10-year low.
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