There are 3 components to affordability…
1. House Price: As we discussed, house price can sometimes be largely due to supply. As supply drops house prices go up, and as supply increases, the house prices either stay the same or slightly decrease.
2. Household Income: This is the amount of money the people living in the house are earning, which is closely tied to employment. You can find the median household income for your area by Googling for it.
3. Interest Rates: Current interest rates are published and easy to determine, however the future of where interest rates are going is a little more difficult to forecast. The Feds and most experts, predict that rates will rise slowly overtime in order to curb inflation.