A growing number of reports are pointing out the concerns surrounding diminishing affordability, however a new report from Trulia says housing is actually more affordable now than it was 40 years ago.
In its latest Mortgage Monitor report, Black Knight explained mortgage rates and home prices pushed affordability to its lowest point since 2009.
Or take this study from GOBankingRates, which shows even the most affordable housing markets still aren’t very affordable.
But Trulia’s new study shows while it may be tempting to think previous generations had it easier, housing is actually more affordable now than it was 40 years ago.
The company constructed an affordability score, comparing the highest price the median household could afford with median actual home prices in each year. A household’s highest affordable price is its maximum buying power, with a 20% mortgage down payment. An affordability score of 100 means that the affordable and actual prices are exactly the same; a score of 100 or higher means housing is affordable, and under 100 means it is not affordable.
The study showed that nationally,…