In the third quarter of 2016, 61.4 percent of new and existing homes were affordable for families earning the United States median income of $65,700, compared with 62 percent in the second quarter, according to the National Association of Home Builders.
"Regulatory restraints along with shortages of buildable lots and skilled workers are adding to the cost of new homes, which is putting upward pressure on home prices," said NAHB Chief Economist Robert Dietz in a statement. "Though these factors have negatively affected the marketplace, affordability still remains positive. Moreover, attractive mortgage rates, rising incomes and growing household formations make this an excellent time to buy."
The national median home price increased from $240,000 in the second quarter to $247,000 in the third quarter, while average mortgage rates decreased from 3.88 percent to 3.76 percent.
The most affordable major housing market was Elgin, Ill., where 94.3 percent of new and existing homes sold in the third quarter were affordable to families making the area’s median income of $82,500.
San Francisco-Redwood City-South San Francisco, Calif., was the least affordable major metro, where 9.7 percent of homes sold were affordable with a family median income of $104,700.
