Housing Affordability at Highest Level in 20 Years

Washington, DC May 25, 2011--In the first quarter of 2011, nationwide housing affordability rose to its highest level in the more than 20 years that it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

The HOI indicated that 74.6% of all new and existing homes sold in the first quarter were affordable to families earning the national median income of $64,400.

This marked the ninth consecutive quarter that the index has been above 7%. Until 2009, the HOI rarely topped 65% and never reached 70%.

"With interest rates remaining at historically low levels, today's report indicates that homeownership is within reach of more households than it has been for more than two decades," said Bob Nielsen, chairman of the National Association of Home Builders and a home builder from Reno, Nevada. "While this is good news for consumers, home buyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales."

In Syracuse, New York, the most affordable major housing market in the country during the first quarter, 94.5% of all homes sold were affordable to households earning the area's median family income of $64,300.

Also ranking near the top of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pennsylvania; Indianapolis-Carmel, Indiana; Warren-Troy-Farmington Hills, Michigan; and Toledo, Ohio.

New York-White Plains-Wayne, New York.-New Jersey led the nation as the least affordable major housing market during the first quarter of 2011.