HAR: Housing affordability decreases nationwide

by Emily Marek

According to a new report from the Houston Association of Realtors®, housing affordability is still a huge concern in Houston and across the country.

HAR’s Q3 2022 Housing Affordability Index shows that only 41% of Houston households can afford to purchase a median-priced home. A year ago, that statistic was significantly higher at 53%.

The current median home price in Houston is $349,500, making the monthly mortgage payment approximately $2,450. The report indicates that Houston buyers need to make 41.5% more annual income than they did a year ago to account for this increase.

While housing affordability is an issue in Houston, numbers are even more grim across the entire Lone Star State. Only 39% of Texas households can afford a median-priced home, which costs around $350,000 statewide.

The national median home price currently sits at $398,500, up 8.6% year over year. Only 38% of households across the country can afford this price, down from 50% in 2021.

While these numbers may seem worrying to potential buyers, HAR says the market is still trending towards healthier days.

“Homebuyers had to navigate an overheated market over the last year, but conditions have been cooling to pre-pandemic levels in recent months,” said HAR Chair Jennifer Wauhob. “We’ve seen home sales slow, prices level off, and inventory rise. These are all indicators that we’re moving closer to more normal, pre-pandemic conditions, and that should create more options and opportunities for consumers.”

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