Amidst all the negative economic news comes a silver lining. Housing affordability has risen to its highest level in four years, thanks to falling home prices in many areas of the country and historically low interest rates, according to the latest NAHB/Wells Fargo Housing Opportunity Index.
The third quarter index finds that 56.1 percent of all new and existing homes sold were affordable to families earning the national median income of $61,500, much higher than 40.4 percent of families who could afford homes at the peak of the housing boom.
The two most affordable major housing markets during the third quarter were Indianapolis, Ind. and Youngstown, Ohio, NAHB reports. The least affordable market was New York where only 10.6 percent of homes sold during the third quarter were affordable to those earning the area’s median income of $63,000.