Adhesives & Sealants Headlines / News / Market Trends

U.S. Housing Affordability Increases

February 27, 2013
/ Print / Reprints /
ShareMore
/ Text Size+

Exceptionally low interest rates reportedly helped ensure a slight gain in nationwide housing affordability amid relatively stable house prices in the final quarter of 2012, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). In all, 74.9% of homes sold between the beginning of October and end of December 2012 were affordable to families earning the U.S. median income of $65,000. This was up nearly a percentage point from the 74.1% of homes sold that were affordable to median-income earners in last year’s third quarter.

“The most recent housing affordability data should be encouraging to many prospective home buyers, because it shows that homeownership remains within reach of median-income consumers even as most local markets appear to be on a recovery path,” said Rick Judson, NAHB chairman and a home builder from Charlotte, N.C.  He noted that the most recent reading of the NAHB/First American Improving Markets Index found that 259 out of 361 metros currently qualify as improving, including representatives from all 50 states and the District of Columbia.

“The median price of all new and existing homes sold in the fourth quarter of 2012 was $188,000, essentially unchanged from the previous quarter’s $189,000 that marked a nearly three-year high,” said David Crowe, NAHB chief economist. “It is noteworthy that affordability remains historically high thanks to favorable mortgage rates even as national home price indexes show some rise in values.”

Ogden-Clearfield, Utah, held its position as the nation’s most affordable major housing market for a second consecutive quarter at the end of 2012. There, 93.7% of all new and existing homes sold were affordable to families earning the area’s median household income of $71,500—up slightly from the 93.2% of homes affordable to median-income earners in the third quarter. Also ranking among the most affordable major housing markets in respective order were Dayton, Ohio; Indianapolis-Carmel, Ind.; Lakeland-Winter Haven, Fla.; and Syracuse, N.Y.

Among smaller housing markets, Fairbanks, Alaska, remained at the top of the affordability chart with nearly all homes sold in the quarter—99.6%—affordable to those earning the median income of $92,900. Other small housing markets at the top of the index included Cumberland, Md.; Springfield, Ohio; Monroe, Mich.; and Mansfield, Ohio, in that order.

After 18 consecutive quarters at the bottom of the affordability chart, New York-White Plains-Wayne, N.Y.-N.J. switched places with San Francisco-San Mateo-Redwood City, Calif., which had been the second-to-least affordable market. Just 28.4% of homes sold in San Francisco during the fourth quarter were affordable to families earning that area’s median income of $103,000. Other major metros at the bottom of the affordability chart included Santa Ana-Anaheim-Irvine, Calif.; Los Angeles-Long Beach-Glendale, Calif.; and Honolulu, Hawaii, in that order.

The least affordable small housing market in the fourth quarter was Ocean City, N.J., where just 43.5% of homes sold were within reach of families earning the median income of $71,100. Other small metros at the bottom of the affordability chart included San Luis Obispo-Paso Robles and Santa Cruz-Watsonville, Calif., followed by Dover, Del., and Santa Barbara-Santa Maria-Goleta, Calif., respectively.

For additional information, visit www.nahb.org/hoi.

Did you enjoy this article? Click here to subscribe to Adhesives & Sealants Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

ASI April 2014 Photo Gallery

Our April 2014 issue is now available!

Podcasts

ExxonMobil Tackifier Expansion

Dwight Tozer, vice president of ExxonMobil’s Adhesion Industry business, discusses the company’s latest tackifier expansion project with Editor-in-Chief Susan Sutton.

More Podcasts

Adhesives & Sealants Industry Magazine

ASI October 2014 cover

2014 October

You won't want to miss our October issue: industry trends from the ASC, converting and packaging, testing, a preview of The Assembly Show, and more!

Table Of Contents Subscribe

Shareholders

Should shareholders have a say in how the money they've invested in a corporation is spent on politics - or if it is spent on politics at all?
View Results Poll Archive

THE ADHESIVES STORE

handbook-sealant-tech.gif
Handbook of Sealant Technology

The Handbook of Sealant Technology provides an in-depth examination of sealants, reviewing their historical developments and fundamentals, adhesion theories and properties, and today’s wide range of applications.

More Products

ASI 2014 Buyers GuideASI's Buyers' Guide

Annual purchasing resource for equipment used in the manufacture/formulation of adhesives, sealants, pressure sensitives, tapes and labels and for application of finished adhesives. 

STAY CONNECTED

facebook_40px twitter_40  youtube_40pxlinkedin_40 google+ icon ASI 30px

Clear Seas Research

With access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.