US housing affordability at an all-time low
Redfin CEO Glenn Kelman says its hard to fault the Fed for overdoing rate hikes when there are other persistent sources of inflation.
Global markets publication The Kobeissi Letter declared last week that housing affordability in America is now at an all-time low, pointing to several striking data points showing it is more expensive to pay for a place to live in the U.S. than ever.
For starters, the outlet said buying a house in the U.S. has become a luxury. It pointed to a Redfin report released Friday showing the median home mortgage payment in the U.S. hit $2,605 a month in July, up 19% from a year ago and the most expensive ever.
A «For Sale» sign outside a home in Atlanta, Georgia. The median mortgage payment in the U.S. is now the highest on record, and so is the asking rent price for a single-family home. (Dustin Chambers/Bloomberg via Getty Images / Getty Images)
Kobeissi reported there are now a record 31 states where homeowners pay a median monthly house payment above $2,000 per month, and Hawaii is now the first state in history with a median house payment above $5,000. Not far behind are Californians whose median mortgage bill is at $4,800, followed by Massachusetts homeowners who pay $4,000.
Thirty-seven states now require at least 30% of median annual income for new home payments in what the letter said «truly is an unprecedented market.» In California, the median house payment requires a record 64% of median household income.
SEATTLE WOMAN OCCUPIES TREE SCHEDULED TO BE CUT DOWN FOR AFFORDABLE HOUSING UNITS
It's not just pricey to buy a home – renting one will also set Americans back more than ever before. The median asking rent for a single-family home just reached an all-time high of $1,900 a month.
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