Homes Have Never Been More Affordable!

For individual home buyers, there are only a few facts that really matter:  
• Can I afford this home?
• Is it a good investment?
• Does it meet my family’s needs?

 So it’s a bit surprising that the most important housing statistic has gone largely unreported: homes have never been more affordable. Affordablilty, measured by the median mortgage payment on the current median priced home ($182,400) as a percentage of the median household income ($64,400), is lower than it’s been in a generation. The chart below, which tracks housing affordability for the past 10 years, shows incredible improvements in affordability since the height of the real estate boom in 2006.