"Traditional housing affordability measurements—taking into account mortgage rates, median incomes, and national home prices—show that in 2024, the situation is only marginally worse than it was for national housing affordability in 1984. This is especially true for buyers who are financing their housing market purchases (although, those who could afford to pay all-cash in 1984 had a considerable advantage over all-cash buyers in 2024).

The reason that 1984 and 2024 housing affordability are closer than incomes and prices alone suggest? Mortgage rates. In 1984, the average 30-year fixed mortgage rate was between 13.0% to 15.0%, whereas in 2024, it hovers around 7.0%"