Homeownership is a core part of the American dream, yet 56% of Americans can only afford homes priced below $300K. Despite the strongest demand being concentrated in more affordable homes, builders continue to focus on larger, more expensive properties, pricing many Americans out of the market and pushing more families toward renting.
Source: Apollo Chief Economist
Affordability is based on a 30-year mortgage rate of 6.5% with 10% down payment. Housing costs are capped at 28% of income, including taxes, insurance and private mortgage insurance (PMI).
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
Comments
Log in or sign up to join the conversation.