Housing affordability is tightening as home prices continue to climb faster than incomes. The median family income rose by 4.5% year over year in December 2021, while the monthly mortgage payment rose 22.5%, the National Association of REALTORS\u00ae reports.<\/p>\n\n\n\n
The threat of rising mortgage rates could pose another challenge to housing affordability in the coming months as well.<\/p>\n\n\n\n
In the fourth quarter, the average monthly mortgage payment on an existing single-family home rose to $1,240, based on a median home value of $361,700 with a 20% down payment and 3.13% 30-year fixed-rate mortgage, according to NAR\u2019s latest quarterly housing report. This marks a jump of $201 compared to a year ago.<\/p>\n\n\n\n
Mortgage payments are comprising a median of 16.9% of a family\u2019s household income, up from 14.7% a year ago, according to NAR data.<\/p>\n\n\n\n
\u201cThe good news is that home prices should begin to normalize later in 2022 as more homes come on the market,\u201d Lawrence Yun, NAR\u2019s chief economist, said in a statement after the release of NAR\u2019s quarterly housing data.<\/p>\n\n\n\n
Where Households Need to Earn the Most<\/strong><\/p>\n\n\n\n In 20 markets, a family needed more than $100,000 to afford a 10% down payment on a mortgage. In these markets, the median home sales price ranged from $537,400 to $1.675 million. Some of these priciest metros for homeownership are:<\/p>\n\n\n\n Where Households Need the Least<\/strong><\/p>\n\n\n\n Pockets of affordability in housing still exist, however. In 81 markets a family needed less than $50,000 to afford a home. NAR located metro areas in which the median home sales price was less than $160,000 and a family needed less than $30,000 to purchase a home. Some of those markets, according to NAR, include:<\/p>\n\n\n\n\n