Housing affordability in the United States declined in May 2022 according to the National Association of Realtors (NAR), falling to its lowest level in 16 years.
NAR’s Housing Affordability Index (HAI) was recorded at 102.5 in May, down from 108.1 in April and 148.2 in May 2021, data from the organization shows (pdf). This is the lowest level since July 2006 when the index had fallen to 100.5.
The latest measurement is also close to the July 1990 index value of 100.2. NAR’s affordability index takes into account multiple factors such as average mortgage rates, median existing home prices, and median family incomes.
The income needed to qualify for a mortgage rose from $58,560 to $88,416 during the preceding 12 months, an increase of over 50 percent. However, the median family income has only risen from $86,757 to $90,642 during this time, an increase of just 4.5 percent….