Home affordability hit a 3-year high during the 3rd quarter of 2019 with almost 64% of households able to afford a home if they earn the U.S. median income of $75,000, according to the National Association of Home Builders (NAHB). During the same period last year, only 56.4% of U.S. households could afford to purchase a home.
According to Rose Quint, author of the NAHB’s “Eye on Housing Blog”, increased affordability is due almost exclusively to lower mortgage interest rates which have helped off-set increases in construction costs.