Why it might be more than a decade before housing affordability returns to 'normal' in the US
SAUL LOEB/AFP via Getty Images It could be decade or more until the housing market sees "normal" affordability, Redfin says. The real estate firm defines "normal" affordability as a mortgage payment-to-income ratio of 30% or lower. If mortgage rates and home prices stay on course, the US may not meet the bar for 10+ years. The US housing market is brutal, and it could be a decade or more before things return to normal. In a new report, Redfin outlined several scenarios for housing affordability over the coming decade. Assuming that mortgage rates stay at their current level and home prices keep rising at their current pace, affordability is unlikely to return to "normal" levels for at least the next 10 years, analysts at the real estate company wrote. Redfin said it defines "normal" affordability as the average mortgage payment-to-income ratio falling back to 30%, referring to the common guidance of keeping housing costs under 30% of your gro...
