Record Low: Housing Affordability Hits Rock Bottom in 2023

Housing affordability in the United States reached its lowest level on record in 2023, with just 15.5% of homes considered affordable for the typical household, according to a report by Redfin. This decline is attributed to the significant increase in mortgage rates and subsequent rise in home prices. The drop in affordability is also influenced by a decrease in listings and a shortage of available homes for sale. However, there is some optimism as housing affordability is starting to improve, with mortgage rates falling and home price growth slowing down.