Home Affordability Falls to Lowest Level in 10 Years
October 8, 2018
ATTOM Data Solutions has released its U.S. Home Affordability Index for Q3 2018, and it shows that U.S. home prices are at their most unaffordable level since 2008.
The report calculates an index based on the income needed to purchase a median-priced home. A reading above 100 indicates that median home prices are more affordable than the historical average, while a reading below 100 indicates homes are less affordable.
The nationwide reading for Q3 was 92. This is down from Q2’s 95 reading. The reading was also down significantly from the same period a year ago, with Q3 2017 showing a reading of 102. This marks the lowest affordability since Q3 2008 when the index was at 87.
Of the 440 counties included in the report, 344 showed an affordability index reading below 100.