Fewer people can afford housing now than ever before and home builders are becoming increasingly concerned about the situation.
While affordability posted a modest gain for average conditions in Q1 2022, according to National Association of Home Builders, it was caused by a strong jump in national median income, which helped to offset a gradual rise in interest rates.
However, home builders warn of current deteriorating conditions as a sharp jump in mortgage rates in March and April coupled with ongoing building material supply chain disruptions, labor shortages and high inflation drive up housing costs, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.
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