Fifty-four percent of for-sale listings of existing homes are within reach for a median-income household in the U.S., according to a new analysis by realtor.com®. Their analysts used the national median income of $51,801 to determine how many of the site’s 1.6 million listings would be affordable to an average family, while also assuming a 20 percent down payment and 30-year fixed-rate mortgage. The monthly payment could not exceed 28 percent of the family’s income.
“So far this year we are hearing from home shoppers that finding a home that meets their needs or budget is the biggest impediment to buying,” says economist Jonathan Smoke, at realtor.com®. “The good news from this data is that more than half of the listings nationwide are by definition affordable. If affordability is a challenge, this tight market favors activity in the heartland, where markets have a high number of affordable homes.”
Realtor.com® analysts also found that existing homes tended to be much more affordable than new homes. In February, realtor.com® had more than 7,700 actively selling new-home communities listed, with an inventory of nearly 57,000 homes available for sale. Only 21 percent of those new homes, however, were deemed affordable.
Source: “Where America’s Affordable Homes Are – and Aren’t – in 2015,” realtor.com® (March 19, 2015)