Home Affordability. Are Homes More or Less Affordable Than 10 Years Ago?

Todd and Oana talk about home affordability comparing interest rates as well as home prices over a period of ten years. We also include the change in median earnings as well as CPI changes and how that affect home affordability.

A few factors that also affect home affordability include the types of loans being given to homebuyers, whether fixed or variable rate as well as the relative income level of homebuyers over time as well as the ratios used by mortgage companies to qualify borrowers for a home purchase.

Some thing that have changed over the last 10 years include the fact that Gen Z and Millennials are the largest home buyer group ever and that they are far more affluent and higher income earners than their peers were only 10 years ago. In 2011 median incomes were about $40,000 but they have risen to $52,000 and in the 25-35 year old range those increases are even higher, making buying a home more affordable, even given the rising cost of housing.

If you have questions about home affordability or buying or selling in Las Vegas please contact us below.

Oana Sterlacci-Miller

Todd Miller

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