According to new data from the National Association of Realtors (NAR), the real estate market continues to show signs of experiencing a strong affordability crisis, recording a 1.8% increase in home prices in the last 12 months.

According to NAR analysis, the median U.S. home price in June reached $440,660, compared to $432,700 a year ago.

The report also highlights housing prices by region, which show variations; For example, in the northeast they are located at $564,800 dollars, in the Midwest at $346,600 dollars, in the south of the country $377,700 dollars and in the west it is at $633,600 dollars.

Likewise, a cost difference was shown between existing single-family homes at $446,400 and condominiums and cooperatives at $380,000. “Affordability is certainly a big challenge for people who want to become homeowners, which is why we need more supply,” Lawrence Yun, NAR chief economist, told the AP.

For his part, Ershang Liang, economist at PNC Economics Research, added that “housing affordability remains low due to slowing wage growth and higher growth in housing prices.”

Since inflation soared in 2022, the real estate market has been hit hard and stagnant, coupled with high mortgage rates that are currently above 6% and a lack of inventory across the country that puts pressure on higher prices.

A recently published analysis by LendingTree noted that less than 50% of households in the United States can at least afford to buy a typical home for the first time, as families would have to have an annual income of approximately $117,000.