“Nobody can afford a home right now.”
That’s how the vast majority of would-be buyers felt last year, according to a recent analysis by real estate group Redfin.
That was closer to being true for minority households.
The average Black household could afford just 7% of listings for sale last year on a median income, while white households could afford 22% of listings. The share was nearly as bad for Latino households, which could afford just 10% of homes for sale. Meanwhile, Asian households could afford 27% of homes for sale at the median income.
The affordability picture was bleak overall. Just 16% of homes for sale in 2023 were affordable to the typical US household, the lowest share on record since Redfin started tracking the metric a decade ago. Overall, the share of affordable listings in the US dropped to 352,500 last year, down 41% from 596,135 a year earlier and down from over 1 million during the prior decade. The costs of homeownership rose even in historically affordable areas due to limited inventory propping up prices.
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