Housing affordability during Q4 2023 was near its lowest level in more than a decade and remained virtually unchanged from the previous quarter, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI), NAHB's Eye On Housing reports. Just 37.7% of new and existing homes sold between the beginning of October and the end of December were affordable to families earning the U.S. median income of $96,300—nearly identical to Q3 2023 (37.4%), the lowest reading since NAHB began consistently tracking affordability in 2012.
The HOI shows that the national median home price was $375,000 in the fourth quarter, down from $388,000 in the third quarter. Meanwhile, average mortgage rates increased more than 30 basis points from 7.13% in the third quarter up to 7.44% in the fourth quarter—the highest rate in the HOI series history.
The top five most affordable major housing markets in the fourth quarter of 2023 were:
- Lansing-East Lansing, Mich.
- Harrisburg-Carlisle, Pa.
- Indianapolis-Carmel-Anderson, Ind.
- Dayton-Kettering, Ohio
- Akron, Ohio
Advertisement
Related Stories
Affordability
Median US Down Payment Falls by More Than $4,000
The recent decrease in costs is welcome relief for homebuyers, but many West Coast markets remain expensive
Affordability
Data Show Most Americans Are Struggling to Afford a Home
40.5 million households can only afford to purchase a $150,000 home
Government + Policy
Housing Affordability Becomes Debate Topic in 2024 Presidential Election
Presidential candidates are tackling affordability issues as home price-to-income ratio reaches record high
