At least in the past 11 years, 2023 was the least affordable year for homebuying, according to Redfin.

• A Redfin report indicates that this year was the least affordable year for homebuying in over a decade.
• The Midwest metros were the most affordable, while California metro regions were the least-affordable.
• Redfin predicts that next year's prices will decrease.

According to a report from real estate company Redfin, this year was the least affordable year for homebuying in at least the past 11 years.

In 2023, someone earning the median income in the U.S. ($78,642) would have spent more than 40% of their income on monthly housing costs if they bought the median-priced home ($400,000), according to Redfin. This is the highest percentage in Redfin's records since 2012, up nearly 3% from the previous year.

The 30-year fixed mortgage rate reached 8% in October, the first time since 2000, while monthly costs for homebuyers increased at a rate more than twice as fast as wages, according to Redfin.

A typical homebuyer needed to earn at least $109,868 to afford a median-priced home with a maximum monthly housing payment of 30% of their income, according to Redfin. This is a 8.5% increase from the previous year and $30,000 more than the typical household income.

In 2023, only Austin, Texas, saw a decrease in affordability, with a 1% reduction, while many expensive metros, including those in California such as Anaheim, San Francisco, and San Jose, forced people to rent due to high housing costs, according to Redfin's analysis.

On the opposite end of the spectrum, Midwest metros were found to be the most affordable, with someone in Detroit earning the median income spending only approximately 18% of their income on monthly housing expenses.

In 2024, Redfin predicts that mortgage rates will decrease to approximately 6.6% and home prices will decline by 1%, as new listings become available on the market.

• The possibility of a supply war with the U.S. is increasing as Saudi Arabia faces challenges in increasing oil prices.