Redfin Reports Only 16% of Home Listings Were Affordable for the Typical Household in 2023
Housing affordability is expected to improve in 2024 as mortgage rates fall and more homes go up for sale
The number of affordable homes for sale also dropped to the lowest level on record. There were 352,500 affordable listings in 2023, down
Mortgage rates have fallen from their October peak, but remain higher than they were in 2022; the typical homebuyer’s monthly payment is roughly
The good news is that housing affordability has already started to improve, and Redfin expects it to continue improving in 2024.
“Many of the factors that made 2023 the least affordable year for homebuying on record are easing,” said Redfin Senior Economist Elijah de la Campa. “Mortgage rates are under
Housing Affordability Was Three Times Worse for Black Households Than for White Households
Only
Housing has become unaffordable for a lot of Americans, but Black and Hispanic/Latino families have been hit especially hard because they’re often less wealthy to begin with. On average, these groups earn less money, have less generational wealth, and have lower credit scores (and sometimes no credit scores at all) than white Americans due to decades of discrimination. That makes it tougher to afford a down payment and qualify for a low mortgage rate. Black Americans, in particular, also frequently face racial bias during the homebuying process.
The racial housing affordability gap exists nationwide, from the least affordable metros to the most affordable metros. In
It’s worth noting that wages have grown faster for nonwhite households than for white households this year, helping to shrink the income gap. Rents have also started to fall, which disproportionately impacts communities of color because they’re more likely to be renters.
Affordable Markets Became Much Less Affordable in 2023
In
Relatively inexpensive metros have seen affordability erode quickly because housing costs have relatively more room to rise, and local incomes are often climbing at a fraction of the pace that mortgage payments are.
In
Markets that have long been expensive like
To view the full report including charts, methodology and metro-level breakouts, please visit:
https://www.redfin.com/news/share-of-homes-affordable-2023
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a
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View source version on businesswire.com: https://www.businesswire.com/news/home/20231221687321/en/
Contact Redfin
Redfin Journalist Services:
Kenneth Applewhaite, 206-414-8880
press@redfin.com
Source: Redfin