Housing Affordability Crisis Hits These Buyers Hardest

To be sure, the housing affordability crunch has hit potential homebuyers nationwide but a new joint report from the National Association of Realtors (NAR) and Realtor.com reveals that one particular group has been impacted more than any other – middle-income buyers.

Why it matters:

• The report found that middle-income buyers – households earning $75,000 – are facing the largest shortage of affordable homes.

• Typically, borrowers at this income threshold (the median household income in the U.S.) can afford to buy a home up to $256,000. But, these buyers can only afford 23% of homes listed in the current marketplace – a drop from five years ago when they could afford about half of market listings.

• Nadia Evangelou, NAR senior economist and Director of Real Estate Research, said of the report’s findings: “A two-fold approach is needed to help with both low affordability and limited housing supply. It\’s not just about increasing supply. We must boost the number of homes at the price range most people can afford to buy.” 

For more details, check out theMReport’s article, “Affordable Housing Shortage Most Impacting Families Earning Less Than $75K.”