DataMarkets & Economy

First American: NYC home prices more affordable now than before recession

Despite nominal price jumps, New York City is more affordable after considering inflation
  • Adjusted for inflation, home prices across the nation are 38.5 percent lower than their peak a decade ago.
  • First American data reveals that real home prices are 17.3 percent lower than they were in 2000.
  • NYC home prices are less of a financial burden than they were in 2015 and slightly less than 2000.

First American has released the newest edition of its Real House Price Index, which reflects inflation factors such as shifts in income and mortgage rates. According to the report, the influence of better wages and declining interest rates shows that even though prices are close to peak in many major metros, consumers are gaining buying power. Despite reports of affordability waning in major metros across the nation, First American found real house prices are 38.5 percent below their peak seen in 2006 and 17.3 percent lower than 2000. Without factoring income and interest rate changes, First American reports home prices are just 2.6 percent away from the 2007 housing peak. First American says foreign financials are helping affordability in the U.S. as more investors are turning toward U.S. Treasury Bonds. As a side effect, treasury yields are keeping mortgage rates low for prospective homebuyers.   NYC home prices, then and now With the RHPI standardized at...