finance
Economist Mohamed El-Erian Notes U.S. Housing Costs at 42 Percent of Income
Mohamed El-Erian cited the Burns Affordability Index showing median homebuyers spend about 42 percent of income on housing. The figure is lower than the 48 percent peak recorded in late 2023 but remains classified as extremely unaffordable.
May 27, 7:49 AM·1m read1 source
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U.S. housing affordability remains under pressure after referencing data that show homebuyers spend roughly 42 percent of income on housing costs. El-Erian cited the Burns Affordability Index, which measures costs for a median-priced existing home with a 10 percent down payment. The index was referenced in a Wall Street Journal report.
El-Erian described the current reading as extremely unaffordable, though it has improved from the 48 percent peak reached in late 2023. Mortgage rates remain above 6 percent while home prices continue to affect buyer decisions. >"Extremely unaffordable.
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