Navigating the evolving landscape of affordable housing in 2024

Less than one-sixth of homes listed in the U.S. in 2023 were affordable for a typical household, with only 15.5% of listings meeting the affordability criteria. Rising home prices, soaring mortgage rates, and racial disparities have contributed to the drop in affordability. Black and Latino buyers face greater challenges due to lower income and wealth. However, recent decreases in mortgage rates have made homes slightly more affordable, leading to an increase in supply and downward pressure on sale prices for older homes. Construction of new homes is also increasing, which may further boost affordability, although overall home prices are unlikely to return to pre-pandemic levels.