Home Unaffordability in U.S. Hits New High

Political Calculations ^ | 04/25/2018

[SeekAndFind]

The trailing twelve month average of median new home sale prices in the United States reached a new high in March 2018, where preliminary data puts that figure at $326,217.

At the same time, the value of the typical new home sale price in the U.S. is 5.57 times as much as the typical household income, which also represents a new record.

One way to think of that latter figure is that new homes in the U.S. have never been less affordable for the typical American family at any time during the 21st Century than they are right now.

References

Political Calculations. Median Household Income in February 2018. 3 April 2018. Note: We are using a preliminary projection for March 2018.

Sentier Research. Household Income Trends: November 2016. [PDF Document]. . [Note: We have converted all the older inflation-adjusted values presented in this source to be in terms of their original, nominal values (a.k.a. "current U.S. dollars") for use in our charts, which means that we have a true apples-to-apples basis for pairing this data with the median new home sale price data reported by the U.S. Census Bureau.]

U.S. Census Bureau. Median and Average Sales Prices of New Homes Sold in the United States. [Excel Spreadsheet]. Accessed 24 April 2018.

Labels: real estate

[Teacher317]

Wait a minute... Median New House prices have DOUBLED since 2001????

From $166k to $326k, in 17 years...

[Theoria]

As noted earlier, lots of chinese buyers. Especially on the west coast.

[TBP]

The progressive elites don’t want peons like you and me in their neighborhoods.

[D Rider]

What would happen if they quit printing money and interest rates went up?

[D Rider]

Your right! The Fed is printing money, that is holding interest rates artificially low. Its a completely synthetic market.

[Kickass Conservative]

Interest Rates were purposely (politically) held to low levels while Lord Obama was POTUS to help him out.

Now that Trump is POTUS, there have been six (?) Interest Rate increases that push up Mortgage Rates.

Just sayin’...

[Buckeye McFrog]

Guess we had to invent the word Unaffordability to support Liberal dogma.

[Buckeye McFrog]

The progressive elites don’t want peons like you and me in their neighborhoods.

Trump should direct HUD to unleash a massive flood of Section 8 residents on them.

[sheana]

Our house was built in 1978. We bought it in 1997 for $125k. It’s in a country club area so now is worth about $400k. We stayed in it and paid it off. We have been working on it and upgrading it ever since we moved in. I’m looking for someone to retire the pool now. I just had plantation shutters put in. I stay within reason but yeah, this is our home and I spend money on it.

[doug from upland]

Higher interest rates mean fewer will qualify for financing. Prices will come down or houses will stay on the market.

[US_MilitaryRules]

A house in my hood just sold for 49k over asking. listed for 689k and sold for 738k.

[SeekAndFind]

RE: A house in my hood just sold for 49k over asking. listed for 689k and sold for 738k.

Obviously the guy who bought it can afford it. So, what’s all these talk about unaffordability?

[huldah1776]

Just read an article, family moved at the right time.

http://www.foxnews.com/politics/2018/04/26/gops-salt-cap-may-speed-exodus-from-high-tax-states-report-says.html

[D Rider]

Higher interest rates mean fewer will qualify for financing. Prices will come down or houses will stay on the market.

Well said.