Housing Affordability and Portfolio Risk

Higher housing prices and rising rates on the demand side, coupled with limited inventory due in part to a long-term housing shortage, has sent affordability to multi-year lows.

Using ZIP Code level data, dv01 latest research highlights why understanding the factors driving regional affordability—supply and demand imbalances, zoning restrictions, building regulations, economic opportunities, culture, and climate— is crucial to portfolio and risk valuation. Even more, dv01 produces the top 10 most and least affordable metro areas (among the top 50). 

Download the latest research to find out more. 

Quick Insights:

• Housing affordability today is still better than levels in the 1970s and 1980s, when affordability was above 30% (page 4).

• While median home prices have grown faster than incomes since the mid-1980s, homeownership rates remain remarkably unchanged over that timespan (page 5).

• There are 43 metro areas with affordability rates 10% worse than the national average of 32.9% (page 8).