For some homebuyers, housing affordability improved in the last 12 months.
According to the Housing Trends Report for the third quarter of 2020, 27% of buyers report being able to afford half or more of the homes available-for-sale in their markets.
A year earlier, that share was 20%.
The National Association of Homebuilders says the increase is an indication that lower mortgage rates. Attractive borrowing costs has had a stronger impact on some buyers’ perceptions of affordability than rising home prices.
Nonetheless, it is important to keep in mind that most home buyers (72%) still say they can afford only a minority of the homes available in their markets.
Here are the Stats:
Between the third quarters of 2019 and 2020…
- The share of buyers who can afford half or more of the homes available rose most significantly among Millennials (17% to 31%)
- Dropped among Boomers (23% to 19%).
- The most significant share rose significantly in the Northeast (21% to 39%),
- Affordability dropped in the Midwest (23% to 19%).