High Demand And Slow Income Growth Make Homeownership Less Affordable

Average homebuyers spent 15.8 percent of their income on mortgage payments at the end of last year, the highest share since 2010.

Through estimates from Zillow, Business Insider reports that rising mortgage rates, slow income growth, and the combination of strong buyer demand and low inventory have made homes less affordable in recent years.

"Nationally, mortgage rates still have room to grow before the share of income needed to pay the median monthly mortgage reaches the historical average, but many more expensive coastal markets are either close to or have exceeded what has been considered historically affordable," Svenja Gudell, Chief Economist at Zillow, said in a report released on Thursday February 16.

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