Made in Excel.

Data Sources are for UNITED STATES ONLY

• Median US home prices: (https://dqydj.com/historical-home-prices/) including CPI adjusted
• US 30 year fixed average mortgage rate: (https://fred.stlouisfed.org/series/MORTGAGE30US)
• CPI adjusted monthly payment is calculated from 80% LTV on median home using median 30 year fixed mortgage rate.
• Median US Income: (https://dqydj.com/household-income-by-year/) including CPI adjusted
• Affordability bar is simply 28% of median gross income

Conclusion: Data shows that housing prices have risen to historically high levels (even by CPI adjustment) but the "monthly cost" of these mortgages remained within a narrow band from 1995 until 2021 and historically high monthly payments (inflation adjusted) for a mortgages occurred during the 1980s, although rapidly increasing rates in 2022 has also spiked mortgage payments.

Affordability of mortgage payments was quite good on a "monthly payments" basis in the USA until a few months ago.

However increasing purchase prices require higher down payments. This significantly affects "affordability" of mortgages, even when monthly payments are within reach of median income earners.