Home Affordability Highest in at Least 18 Years

Washington, DC, May 19, 2009--Nationwide housing affordability jumped 10 percentage points during the first quarter to its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.
 
The HOI showed that 72.5 percent of all new and existing homes sold in the first quarter were affordable to families earning the national median income of $64,000, up from 62.4 percent during the previous quarter and up from 53.8 percent during the first quarter of 2008.
 
“Underlying the increase in affordability are lower home prices and record low interest rates.  Combined with the $8,000 federal tax credit for first-time home buyers, consumers are beginning to return to the marketplace,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.
 
Indianapolis was the most affordable major housing market in the country during the first quarter. Almost 95 percent of all homes sold were affordable to households earning the area’s median family income of $68,100. Indianapolis has now topped the affordability list 15 consecutive quarters.