Home Affordability Crisis is FAKE. Comparing Affordability from 1990 to Today

Even the CEO of Redfin said that there was a home affordability crisis, but the data just isn’t showing that. We compare home affordability from 1990 to today and see just how homes are even more affordable than they were previously. While housing is certainly more expensive in nominal dollars, in real dollars homes are more affordable than any year since 2010.

Taking into account home affordability isn’t just looking at the prices of homes but also how much buying power a homeowner has today vs previous years. Also comparing home prices and mortgage rates to the CPI also gives a good indication to how affordable buying and owning a home really is compared to previous years.

Home are certainly less affordable than a few years ago, but not even close to the level that would warrant calling it a crisis.

Not investment advice. Opinion only.

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