Families earning the Unites Stated median income of $65,700 could afford 62 percent of new and existing homes sold between April and June, down from 65 percent in the first quarter of 2016, according to the National Association of Home Builders Housing Opportunity Index.
"Though we have seen a modest drop in affordability in the second quarter, the HOI is still fairly high by historical standards," said NAHB Chief Economist Robert Dietz in a statement. "Rising employment, favorable mortgage rates and increasing household formations will keep the housing market on a gradual, upward path during the rest of the year."
The U.S. median income during the second quarter was $240,000, an increase of $10,000 from the first quarter.
The most affordable major housing market was Youngstown-Warren-Boardman, Ohio-Pa., where 91.1 percent of homes sold in the second quarter were affordable to families making the area's median income of $53,900. The most affordable small market was Kokomo, Ind., where 98.2 percent of homes sold in the second quarter were affordable to families making the median income of $60,900.
San Francisco-Redwood City-South San Francisco, Calif., was the nation’s least affordable housing market for the 15th consecutive quarter. There, 8.5 percent of homes were affordable to families making the area's median income of $104,700 in the second quarter. Santa Cruz-Watsonville, Calif., was the least affordable small market, with 14.7 percent of homes affordable to families earning the median income of $85,100.
