Housing Affordability Nearing Record Highs in Q1 – NMP Skip to main content

Housing Affordability Nearing Record Highs in Q1

May 15, 2013

Nationwide housing affordability held near historic highs in this year's first quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). In all, 73.7 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $64,400. This is down slightly from the 74.9 percent of homes sold that were affordable to median-income earners in the final quarter of 2012. "Thanks to very favorable mortgage rates and prices, housing affordability has remained quite high over the past four years," observed NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. "The HOI has not slipped below 70 since the end of 2008. That said, from a builder's perspective, it should be noted that rising costs for building materials, lots and labor are making it somewhat more expensive to construct new homes in today's market." "HOI results for the beginning of 2013 are little changed from what they were at the end of 2012, with Ogden-Clearfield Utah holding onto the title of the nation's most affordable major housing market and San Francisco-San Mateo-Redwood City, Calif. retaining its position as the least affordable major market," said NAHB Chief Economist David Crowe. "The bottom line is that, for consumers who can qualify for a mortgage at today's attractive rates, the majority of homes being sold remain within their grasp in markets nationwide." This was the third consecutive quarter in which Ogden-Clearfield hit the top of the affordability chart for major markets. There, 93.4 percent of all new and existing homes sold in this year's first quarter were affordable to families earning the area's median income of $70,800 - essentially unchanged from the 93.7 percent of homes affordable to median-income earners at year-end 2012. Other major U.S. housing markets at the top of the affordability chart in the first quarter included Indianapolis-Carmel, Ind.; Lakeland-Winter Haven, Fla.; Youngstown-Warren-Boardman, Ohio-Pa.; and the two New York metros of Syracuse and Albany-Schenectady-Troy tied for the fifth position. Among smaller housing markets, Mansfield, Ohio, claimed the "most affordable" title this time around, with 97.5 percent of homes sold in the first quarter being affordable to those earning the median income of $54,600. Other small housing markets at the top of the index included Cumberland, Md.-W.Va., followed by Fairbanks, Alaska; Springfield, Ohio; and Dover, Del., respectively. This was the second consecutive quarter in which the San Francisco-San Mateo-Redwood City, Calif. metro area hit the bottom of the affordability chart for major markets. There, just 28.9 percent of homes sold in the first quarter were affordable to families earning the area's median income of $102,000. Other major metros at the bottom of the affordability chart included New York-White Plains-Wayne, N.Y.-N.J. and the three California metros of Santa Ana-Anaheim-Irvine; Los Angeles-Long Beach-Glendale; and San Jose-Sunnyvale-Santa Clara, in that order. The least affordable small housing market in the first quarter was Santa Cruz-Watsonville, Calif., where 37.1 percent of all new and existing homes sold were affordable to those earning the area's median family income of $73,800. Other small metros at the bottom of the affordability chart included Salinas, Calif.; San Luis Obispo-Paso Robles, Calif.; and Ocean City, N.J.; followed by the metros of Santa Barbara-Santa Maria-Goleta and Napa, Calif., which tied for fifth place.
About the author
Published
May 15, 2013
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026