NAR Report

Rising home prices are outpacing household incomes nationwide, making it even tougher on first-time buyers, a new report from the National Association of Realtors and Realtor.com found.

First-time buyers in Hawaii, California, Oregon, Montana, Rhode Island and the District of Columbia struggled the most, according to the Realtors Affordability Distribution Curve and Score, which measures affordability through a combination of data on mortgages, income and Realtor.com listings. Residents in those states can only afford between 19-23 percent of the active housing inventory, according to the NAR report, released on Wednesday.

“The survey confirms that the lack of entry-level supply is putting affordability pressures on too many buyers — especially those at the lower end of the market, where demand is the strongest,” said Lawrence Yun, chief economist at NAR, in a prepared statement. “This is why first-time buyers continue…