The Economics Behind the Rising Home Prices: Unpacking the Drivers of Affordability
Tuesday, 19 March 2024, 10:00
The Current State of Housing Affordability
Buying a home today can be challenging, with factors such as income, interest rates, and home prices influencing affordability.
Drivers of Housing Affordability
The Federal Reserve Bank of Atlanta highlights income levels, mortgage rates, and housing prices as crucial factors in housing affordability.
HOAM Index
- Affordable market: HOAM score of 100 or higher
- Challenges: HOAM score dropping to record lows, impacting homebuyers
Causes of the Affordability Crisis
Key contributors include housing supply shortages, increased buyer demand, and rising home prices due to limited inventory.
Impact of Housing Market Dynamics
Rising home prices and competitive bidding wars paint a challenging landscape for potential homebuyers in the current market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.