AFFORDABILITY AFFRONT

To return home buyer affordability to its pre-Covid level, one of the following must happen: wages must rise 56%, lifting the median household wage to $132,000/year, the 30-year mortgage rate must fall 2.65% (assuming no resulting increase in home prices), or home prices need to slide 35%. Assuming a 19% rise in wages and rates falling to 3.85%, home prices would still need to fall 12%. Build homes!