Midwest housing affordability worsens as over half of metro areas become unaffordable

Midwest: The Midwest is a U.S. region that has traditionally offered lower home prices than the coastal and Sunbelt markets, making it a relative affordability destination for buyers. The region is central to the news because rising prices, limited construction, constrained inventory, and elevated mortgage costs have made homeownership unaffordable in more than half of its metropolitan areas. Inventory: Severe inventory shortages and limited new construction are supporting home-price growth across several Midwestern states despite higher mortgage rates. Affordability: The Midwest remains the most affordable U.S. region in absolute housing terms, but the share of affordable homes has fallen substantially as starter-home prices have risen. Mortgage_rates: Elevated borrowing costs are increasing monthly payments and reducing buyers’ purchasing power, limiting the prospect of near-term affordability relief.