AFFORDABLE HOUSING

Physician's Money Digest, May 15 2003, Volume 10, Issue 9

Financial experts who have forecastedan end to the rise in real estateprices have yet to see their predictionscome true. Despite higherprices, however, a new home is stillan affordable option for mostAmericans, according to a recent statisticalsurvey. The survey shows thatthe average home costs 3.6 timesmore than the average household income,up from 3.2 times the averagehousehold income 3 years ago, butstill well within the range of pricesover the past 2 decades. Because ofplunging interest rates, the medianpercentage of household income devotedto mortgage payments is 22%,the same level it was at in 1999.