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.
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00:00 It's Benzinga and here's what's on the block.
00:02 According to a report by real estate company Redfin, 2023 was the least affordable year
00:07 for home buying in at least the past 11 years in the United States.
00:11 In 2023, someone making the median income in the US, which is approximately $80,000,
00:16 would have to spend over 40% of their income on monthly housing costs to buy a median price
00:21 home of around $400,000.
00:24 Monthly housing costs for homebuyers increased by more than twice as fast as wages.
00:28 The 30-year fixed mortgage rate also hit 8% in October of 2022, which is the highest since
00:34 the 2000s, which is combined with a decrease in housing listings on the market.
00:39 Redfin predicts mortgage rates will fall to approximately 6.6% in 2024 and home prices
00:44 will drop approximately 1% as more listings enter the market, which will improve affordability
00:49 compared to 2023.
00:50 For all things money, visit Benzinga.com.
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