As the housing market continues to soar out of control, it’s becoming increasingly difficult for prospective buyers to purchase a home. In an unprecedented new report, it has been revealed that nearly all of the homes listed for sale in 2023 were deemed unaffordable by the National Association of Realtors (NAR).
The report, which studied housing affordability throughout the United States, paints an alarming picture for those looking to purchase a home. According to the survey, an estimated 97.5 percent of homes listed for sale in 2023 were deemed unaffordable. This is up from 92.7 percent in 2021 and 87.5 percent in 2020, and the number is expected to continue to rise in the coming years.
The survey found that purchasing a home in many major metropolitan areas was completely out of reach for many prospective buyers. For example, in Los Angeles, the median home price was estimated to be $850,000, which is far above the median annual income of $49,485. Similarly, in New York City, the median home price was estimated to be $1.3 million, while the median annual income was $56,115.
The report also determined that the issue of housing affordability is not limited to the coasts. In the Midwest, many states also saw median home prices far outpacing median incomes. For example, in Iowa, where the median home price was estimated to be $200,000, the median annual income was $50,799.
The report’s findings are particularly worrisome given the number of Americans who are struggling financially due to the ongoing pandemic. It is estimated that millions of people have been left unemployed or underemployed due to the economic crisis, making the prospect of purchasing a home increasingly daunting.
Fortunately, there are some steps people can take to make purchasing a home more affordable. For example, some states have implemented tax incentives and low interest rate mortgages specifically designed to aid prospective buyers. Additionally, many cities and counties offer housing assistance programs for those who qualify.
Ultimately, the new report is a stark demonstration of how the current housing market has become increasingly out of reach for many people. With the proper assistance, however, it is possible for prospective buyers to purchase a home, even in the current economic environment.
