Homebuying in the U.S. hits 11-year low in affordability

According to a report by real estate company Redfin, 2023 was the least affordable year for homebuying in at least the past 11 years in the United States. In 2023, someone making the median income in the U.S. ($78,642) would have had to spend over 40% of their income on monthly housing costs to buy a median-priced home of around $400,000. Monthly housing costs for homebuyers increased more than twice as fast as wages. The 30-year fixed mortgage rate hit 8% in October 2022, the highest since 2000, combined with a decrease in house listings on the market. Redfin predicts mortgage rates will fall to around 6.6% in 2024 and home prices will drop 1% as more listings enter the market, improving affordability compared to 2023.