Housing Market Affordability Hits Record Low in 2023

The US housing market in 2023 was the least affordable since 2013, with only 15.5% of homes being affordable for the typical household, according to Redfin. This is a decrease from 20.7% in 2022 and the lowest share ever recorded by Redfin. The total number of affordable homes for sale also dropped by 40.9% compared to the previous year. The decline in affordability is attributed to high mortgage rates, rising home prices, and a decrease in available listings. However, Redfin predicts that affordability may improve in 2024 due to lower mortgage rates and an increase in listings.