More rambling on housing affordability

Real estate prices have been going down a little, but affordability is still a major issue. For example, a 984 sq. ft. house with 3 bedrooms and 2 baths in my area just sold for $400k.

To put this price into perspective at current interest rates, a buyer would need an annual household income of about $120,000 to qualify with 5% down.

The median income for a family of 4 in the Portland region is $114,400. Median income for all households was $81,149 in 2021, according to the Oregon Employment Department.

You would have to be in about the top 85th percentile of households in terms of income to afford this home in today’s market. The payment would be about $3,100 per month on a standard 30-year mortgage.