NAR: Home price growth surpasses incomes

3 of 4 regions nationally see year-over-year declines in affordability
  • The Midwest is the most affordable region, with the most affordable cities in the nation.
  • No surprise: The West leads the nation in home price gains, but it is the least affordable.
  • Similar increase in home prices likely, which should continue to reduce affordability.

The median price of a single-family home rose to $235,500 in July, a 5.8 percent year-over-year rise. At the same time, incomes nationally grew by 2 percent. These stats don’t bode well for housing affordability, as indicated by a recent National Association of Realtors index. The findings show that affordability is down nationally from 155.4 in July 2014 to 151.2 in July of this year.