Home affordability has hit its lowest level in more than 16 years, with a median household now forced to spend over 40 percent of its income to afford a home.
In December 2022, the average U.S. household would have had to spend 42.9 percent of its income to afford a home with a median price of $347,333 according to data from the Federal Reserve Bank of Atlanta’s Home Ownership Affordability Monitor. This is the highest proportion since August 2006, when a household had to spend 41.1 percent of its income for a median-priced home, which at that time cost $230,859.
