Home Affordability Drops But Remains Historically High

Home affordability fell in the year's first quarter, but low interest rates and home prices kept the number at a near record high.

 

According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index, Homeowners with a median family income of $64,000 were able to afford 73.7 percent of all new and existing homes sold during the first quarter.

 

Homes are less affordable in the Portland area, where only 68.7 percent of homes are affordable at the median family income of $68,300.

 

Because of lower income levels, the Portland area is ranked as slightly less affordable than the Seattle area. In San Francisco, ranked as the least affordable housing market in the country, only 28.9 percent of homes are affordable to families earning the median income.

 

Oregon's most affordable metro is Corvallis, where 86.8 percent of homes are affordable to median-income families. Salem comes in second at 82.8 percent affordable and Eugene-Springfield is third at 78.2 percent.

 

For Full Article see Elliot Njus, The Oregonian, May 14, 2013