Affordability squeeze eases a bit, but housing market still tough for middle class

No, you can’t afford this SoCal listing on a median income. Photo by Jeff Ostrowski.

It sounds a little too obvious: The less you make, the less house you can afford. But the economists at the National Association of Realtors and Realtor.com just put out an intriguing analysis of the affordability picture by income bracket.

If your family pulls in $75,000 a year, you can afford to buy a $255,000 house — and houses in your price range make up less than a quarter of homes for sale nationally, according to the report.

But if you’ve got a household income of $250,000, you can afford about 80% of homes on the market.

NAR and Realtor.com say the affordability squeeze has eased a bit over the past year. Mortgage rates haven’t moved much, home price appreciation has cooled and more listings are coming on the market.

As for income levels, NAR and Realtor.com break down the affordability picture like this:

$50,000

A $50,000 income qualifies a buyer for a home up to $170,000. While one in three households are below this income level nationally, buyers at this level can afford just 8.7% of homes listed for sale.

$75,000