JRE - New Homes 'Seriously Unaffordable' In U.S.

2024-07-16 09:10:00 ET

Summary

• The affordability of new homes sold in the United States was little changed in May 2024.
• With the mortgage payment for the typical new home sold consuming 43% of the income earned by a household in the exact middle of the distribution of income in the U.S., new homes remain out of affordable reach for the majority of American households.
• According to ATTOM, in more than one-third of the markets they examined, "homeowners were spending at least 43% of their wages on housing, a level the firm defines as "'seriously unaffordable.'"

The affordability of new homes sold in the United States was little changed in May 2024. With the mortgage payment for the typical new home sold consuming 43% of the income earned by a household in the exact middle of the distribution of income in the U.S., new homes remain out of affordable reach for the majority of American households....

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