{"id":2674,"date":"2018-10-11T10:00:35","date_gmt":"2018-10-11T10:00:35","guid":{"rendered":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/"},"modified":"2018-10-11T10:00:35","modified_gmt":"2018-10-11T10:00:35","slug":"dispelling-the-myth-about-home-affordability","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/","title":{"rendered":"Dispelling the Myth About Home Affordability"},"content":{"rendered":"
\n

\"Dispelling<\/p>\n

We have all seen the headlines that report that buying a home is less affordable today than it was at any other time in the last ten years, and those headlines are accurate. But, have you ever wondered why the headlines don\u2019t say the last 25 years, the last 20 years, or even the last 11 years?<\/span><\/p>\n

The reason is that homes were less affordable 25, 20, or even 11 years ago than they are today.<\/strong><\/h4>\n

Obviously, buying a home is more expensive now than during the ten years immediately following one of the worst housing crashes in American history.<\/p>\n

Over the past decade, the market was flooded with distressed properties (foreclosures and short sales) that were selling at 10-50% discounts. There were so many distressed properties that the prices of non-distressed properties in the same neighborhoods were lowered and mortgage rates were kept low to help the economy.<\/p>\n

Low Prices + Low Mortgage Rates = High Affordability<\/strong><\/h4>\n

Prices have since recovered and mortgage rates have increased as the economy has gained strength. This has and will continue to impact housing affordability moving forward.<\/p>\n

However, let\u2019s give affordability some historical context. The National Association of Realtors<\/em> (NAR) issues their Affordability Index<\/a><\/em> each month. According to NAR:<\/p>\n

\n

\u201cThe Monthly Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent monthly price and income data.\u201d<\/em><\/p>\n<\/blockquote>\n

NAR\u2019s current index stands at 138.8. The index had been higher each of the last ten years, peaking at 197 in 2012 (the higher the index the more affordable houses are).<\/p>\n

But, the average index between 1990 and 2007 was just 123 and there were no years with an index above 133. That means that homes are more affordable today than at any time during the eighteen years between 1990 and 2007.<\/p>\n

Bottom Line<\/strong><\/h3>\n

With home prices continuing to appreciate and mortgage rates increasing, home affordability will likely continue to slide. However, this does not mean that buying a house is not an attainable goal in most markets as it is less expensive today than during the eighteen-year stretch immediately preceding the housing bubble and crash.<\/p>\n<\/div>\n

Powered by WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

We have all seen the headlines that report that buying a home is less affordable today than it was at any other time in the last ten years, and those headlines are accurate. But, have you ever wondered why the headlines don\u2019t say the last 25 years, the last 20 years, or even the last […]<\/p>\n","protected":false},"author":101010,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[110,98,99,100,102],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\nDispelling the Myth About Home Affordability - The Zakaria Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dispelling the Myth About Home Affordability - The Zakaria Group\" \/>\n<meta property=\"og:description\" content=\"We have all seen the headlines that report that buying a home is less affordable today than it was at any other time in the last ten years, and those headlines are accurate. But, have you ever wondered why the headlines don\u2019t say the last 25 years, the last 20 years, or even the last […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/\" \/>\n<meta property=\"og:site_name\" content=\"The Zakaria Group\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/thezakariagroup\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-10-11T10:00:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2018\/10\/09143106\/20181011-Share-STM.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/\"},\"author\":{\"name\":\"\",\"@id\":\"https:\/\/thezakariagroup.com\/#\/schema\/person\/3faf57a8142a13b0b75bddafdfe7ec5d\"},\"headline\":\"Dispelling the Myth About Home Affordability\",\"datePublished\":\"2018-10-11T10:00:35+00:00\",\"dateModified\":\"2018-10-11T10:00:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/\"},\"wordCount\":368,\"publisher\":{\"@id\":\"https:\/\/thezakariagroup.com\/#organization\"},\"articleSection\":[\"Buying Myths\",\"First Time Home Buyers\",\"For Buyers\",\"For Sellers\",\"Housing Market Updates\"],\"inLanguage\":\"en\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/\",\"url\":\"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/\",\"name\":\"Dispelling the Myth About Home Affordability - The Zakaria Group\",\"isPartOf\":{\"@id\":\"https:\/\/thezakariagroup.com\/#website\"},\"datePublished\":\"2018-10-11T10:00:35+00:00\",\"dateModified\":\"2018-10-11T10:00:35+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/#breadcrumb\"},\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thezakariagroup.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Dispelling the Myth About Home Affordability\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thezakariagroup.com\/#website\",\"url\":\"https:\/\/thezakariagroup.com\/\",\"name\":\"The Zakaria Group\",\"description\":\"The Zakaria Group\",\"publisher\":{\"@id\":\"https:\/\/thezakariagroup.com\/#organization\"},\"alternateName\":\"TZG, MLS\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/thezakariagroup.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/thezakariagroup.com\/#organization\",\"name\":\"The Zakaria Group\",\"alternateName\":\"TZG\",\"url\":\"https:\/\/thezakariagroup.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\/\/thezakariagroup.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/thezakariagroup.com\/wp-content\/uploads\/2018\/10\/logo-1.png\",\"contentUrl\":\"https:\/\/thezakariagroup.com\/wp-content\/uploads\/2018\/10\/logo-1.png\",\"width\":400,\"height\":173,\"caption\":\"The Zakaria Group\"},\"image\":{\"@id\":\"https:\/\/thezakariagroup.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/thezakariagroup\/\",\"https:\/\/www.youtube.com\/channel\/UCX6VeVxc5BNyr8TY1piPyXw\",\"https:\/\/www.instagram.com\/thezakariagroup\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/thezakariagroup.com\/#\/schema\/person\/3faf57a8142a13b0b75bddafdfe7ec5d\",\"name\":\"\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\/\/thezakariagroup.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g\"},\"url\":\"https:\/\/thezakariagroup.com\/author\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Dispelling the Myth About Home Affordability - The Zakaria Group","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/","og_locale":"en_US","og_type":"article","og_title":"Dispelling the Myth About Home Affordability - The Zakaria Group","og_description":"We have all seen the headlines that report that buying a home is less affordable today than it was at any other time in the last ten years, and those headlines are accurate. But, have you ever wondered why the headlines don\u2019t say the last 25 years, the last 20 years, or even the last […]","og_url":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/","og_site_name":"The Zakaria Group","article_publisher":"https:\/\/www.facebook.com\/thezakariagroup\/","article_published_time":"2018-10-11T10:00:35+00:00","og_image":[{"url":"https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2018\/10\/09143106\/20181011-Share-STM.jpg"}],"twitter_card":"summary_large_image","twitter_misc":{"Written by":"","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/#article","isPartOf":{"@id":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/"},"author":{"name":"","@id":"https:\/\/thezakariagroup.com\/#\/schema\/person\/3faf57a8142a13b0b75bddafdfe7ec5d"},"headline":"Dispelling the Myth About Home Affordability","datePublished":"2018-10-11T10:00:35+00:00","dateModified":"2018-10-11T10:00:35+00:00","mainEntityOfPage":{"@id":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/"},"wordCount":368,"publisher":{"@id":"https:\/\/thezakariagroup.com\/#organization"},"articleSection":["Buying Myths","First Time Home Buyers","For Buyers","For Sellers","Housing Market Updates"],"inLanguage":"en"},{"@type":"WebPage","@id":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/","url":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/","name":"Dispelling the Myth About Home Affordability - The Zakaria Group","isPartOf":{"@id":"https:\/\/thezakariagroup.com\/#website"},"datePublished":"2018-10-11T10:00:35+00:00","dateModified":"2018-10-11T10:00:35+00:00","breadcrumb":{"@id":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/#breadcrumb"},"inLanguage":"en","potentialAction":[{"@type":"ReadAction","target":["https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/thezakariagroup.com\/dispelling-the-myth-about-home-affordability\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/thezakariagroup.com\/"},{"@type":"ListItem","position":2,"name":"Dispelling the Myth About Home Affordability"}]},{"@type":"WebSite","@id":"https:\/\/thezakariagroup.com\/#website","url":"https:\/\/thezakariagroup.com\/","name":"The Zakaria Group","description":"The Zakaria Group","publisher":{"@id":"https:\/\/thezakariagroup.com\/#organization"},"alternateName":"TZG, MLS","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/thezakariagroup.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en"},{"@type":"Organization","@id":"https:\/\/thezakariagroup.com\/#organization","name":"The Zakaria Group","alternateName":"TZG","url":"https:\/\/thezakariagroup.com\/","logo":{"@type":"ImageObject","inLanguage":"en","@id":"https:\/\/thezakariagroup.com\/#\/schema\/logo\/image\/","url":"https:\/\/thezakariagroup.com\/wp-content\/uploads\/2018\/10\/logo-1.png","contentUrl":"https:\/\/thezakariagroup.com\/wp-content\/uploads\/2018\/10\/logo-1.png","width":400,"height":173,"caption":"The Zakaria Group"},"image":{"@id":"https:\/\/thezakariagroup.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/thezakariagroup\/","https:\/\/www.youtube.com\/channel\/UCX6VeVxc5BNyr8TY1piPyXw","https:\/\/www.instagram.com\/thezakariagroup\/"]},{"@type":"Person","@id":"https:\/\/thezakariagroup.com\/#\/schema\/person\/3faf57a8142a13b0b75bddafdfe7ec5d","name":"","image":{"@type":"ImageObject","inLanguage":"en","@id":"https:\/\/thezakariagroup.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g"},"url":"https:\/\/thezakariagroup.com\/author\/"}]}},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/thezakariagroup.com\/wp-json\/wp\/v2\/posts\/2674"}],"collection":[{"href":"https:\/\/thezakariagroup.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thezakariagroup.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thezakariagroup.com\/wp-json\/wp\/v2\/users\/101010"}],"replies":[{"embeddable":true,"href":"https:\/\/thezakariagroup.com\/wp-json\/wp\/v2\/comments?post=2674"}],"version-history":[{"count":0,"href":"https:\/\/thezakariagroup.com\/wp-json\/wp\/v2\/posts\/2674\/revisions"}],"wp:attachment":[{"href":"https:\/\/thezakariagroup.com\/wp-json\/wp\/v2\/media?parent=2674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thezakariagroup.com\/wp-json\/wp\/v2\/categories?post=2674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thezakariagroup.com\/wp-json\/wp\/v2\/tags?post=2674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}