Housing Affordability: How Big is This Problem in Tyler?
Document Type
Article
Publication Date
Spring 5-25-2024
Persistent Identifier
http://hdl.handle.net/10950/4804
Abstract
The Hibbs Institute's brief, "Housing Affordability: How Big is This Problem in Tyler?" analyzes the impact of rising housing costs and stagnant income growth on affordability in the United States, with a focus on the Tyler Metropolitan Statistical Area (MSA). Nationally, the median sale price of residential housing surged by 45.8% from February 2020 to June 2022, driven by low mortgage rates and increased demand. This trend led to a significant affordability gap, peaking in October 2023, when the income required to afford a median-priced home was 51% higher than the national median household income. In the Tyler MSA, a similar pattern emerged, with median sale prices increasing by 46% from 2020 to 2023. Despite a slight decrease in home prices in early 2024, the affordability gap persisted, with the income needed to purchase a median-priced home exceeding the area's median household income by 54.3% in December 2023. The brief highlights the growing challenge of housing affordability, particularly for younger generations, and underscores the need for strategies to address this issue in both national and local contexts.
