Only 23% of homes in the US are affordable to middle-income buyers, per the National Association of Realtors. A year ago, 50% were.

3 years ago, the average 30-year mortgage rate was 2.98%, per Charlie Bilello. The median existing home price in the US was $294,000 . Currently, the 30-year mortgage rate is 6.78% and the median home price is $410,000.

Meanwhile, a recent report from the National Association of Realtors and Realtor.com highlights the alarming state of the US housing market, where more than 75% of homes available are beyond the reach of middle-class buyers. The primary cause of this affordability crisis is the scarcity of housing supply, which has significantly impacted middle-income buyers. Elevated mortgage rates have exacerbated the problem, resulting in a shortage of around 320,000 homes priced at or below $256,000 – the maximum affordable price for a middle-income buyer earning up to $75,000.

In April, out of the 1.1 million listings on the market, middle-income buyers could only afford approximately 23% of them. This is a substantial decline compared to five years ago when around 50% of all listings were considered affordable for this group.

The report identifies Ohio as the state with the three metropolitan areas having the largest inventory of affordable homes. Conversely, El Paso, Texas; Boise, Idaho; and Spokane, Washington have the fewest number of affordable listings.

NAR senior economist Nadia Evangelou emphasized that the housing affordability and shortage issues wouldn't be so severe if there were enough homes available at various price ranges. She suggested that the country needs to add at least two affordable homes for middle-income buyers for every home listed for upper-income buyers.

Read more: https://unusualwhales.com/news/housing-has-become-so-unaffordable-that-over-75-of-homes-on-the-market-are-too-expensive-for-middle-income-buyers