Housing Affordability at Record Levels
The housing affordability index for the third quarter of 2011 is hovering near its highest levels in over 20 years due to record low interest rates along with stabilizing home prices.
72.9% of residential property sold in the 3rd quarter was affordable to families earning an average income of $64,200. This is the 11th straight quarter that the affordability index was above 70%. In previous years, the index rarely reached above 59%.
Homeownership is available to more people than it has been for nearly 20 years. Historically low interest rates and low home pricing contribute to this statistic. However, tight credit conditions still confront home buyers and builders and continue to be a stumbling block for some.
Lakeland-Winter Haven, Florida is currently the most affordable housing market nationwide. 92.5% of all homes purchased were affordable to purchasers earning the median family income of $53,800. Alternate affordable markets include Youngstown, Ohio; Toledo, Ohio; Indianapolis, Indiana; and Ogden, Utah.
New York, NY is the least affordable major housing market. Within this vicinity, only 23.3% of all homes purchased were affordable to those averaging an income of $67,400.
