Keller Williams Realty of Northern Colorado

Affordability - % of Income
The percentage of a median family’s income required to make mortgage payments on a median-priced home

Housing affordability continues to be at record highs this year with the added stimulus of the first-time buyer credit. So far this year, payment percentages have been the lowest on record dating back to 1970. A typical mortgage payment on a median-priced home historically has consumed 25% of a middle-income family’s monthly earnings, it’s now taking up only16%. According to Lawrence Yun, NAR chief economist, “As long as home buyers stay within their budget, mortgage payments will be very manageable.”

Source: Keller Williams Realty, Inc., “This Month in Real Estate: September 2009″