Housing affordability in the second quarter of 2022 reached its lowest point since the Great Recession, according to an analysis by the National Association of Home Builders.
Only 42.8% of new and existing homes sold between April and the end of June were affordable to families earning the U.S. median income of $90,000, a decline from 56.9% in the first quarter of 2022.
The median home price during the second quarter reached a record high of $390,000, overcoming the previous record-high of $365,000 set in the first quarter of 2022.
“Rising housing costs stemming from increased interest rates, supply chain disruptions that have led to higher prices for building materials, and a persistent lack of construction workers are dramatically affecting home prices,” NAHB Chairman Jerry Konter said in a statement. “Taming housing costs will ultimately require building more homes, and it will be easier to increase production in more affordable smaller and mid-sized markets that are growing in population and attracting new businesses.”
