Buyer Consideration – The Most Affordable Housing In History

   The National Association of Realtors has been tracking housing affordability since 1972. NAR looks at the three most critical components to housing affordability. They are:

· Housing prices

· Interest rates for existing homes closed

· National median family income

   A rating of 100 is great because it means that an average family qualifies for the average home. Right now the rating is almost the highest ever at 177, compared to the low of 62 in 1982.

With the 16 Trillion dollars in debt that must be funded on the one hand, and the improving economy and housing industry on the other, how long will it be before interest rates and housing prices go higher, making housing much less affordable? Or, to put it another way, how much real estate should you own if the US becomes a nation of renters?