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.
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.”