MetroIntelligence Economic Update by P. DUFFY
Share of median income to cover P&I payments at 35-year high
Rising rates and home prices have pushed the principal and interest (P&I) payment needed to purchase the median-priced home up $144 per month over the past 30 days to more than $2,500 for the first time. It now takes 40.6% of the (national) median household income to cover monthly P&I – after averaging less than 25% over the past 35 years – making for the least affordable housing market since 1984.
September revolving credit balances rise to new record
After jumping at annual rate of 13.7% in August, in September revolving consumer credit use (such as credit cards) rose by 2.9%. Total outstanding balances for revolving credit rose to a new record high of $1.287.7 trillion. After falling 9.8% in August, nonrevolving credit use (such as for tuition and car loans) rose 1.9%.
Total outstanding balances for nonrevolving credit rose to $3.688.6 trillion, down from the last peak of over $3.714 trillion in July.
Rent growth reaccelerates after nearly two-year slowdown
The nearly two-year-long slowdown in rent growth may finally have come to an end in October. After slowing in every month since a record-high 16.1% in February 2022, the annual change in typical U.S. asking rent increased in October, according to the Zillow Observed Rent Index (ZORI). ZORI increased in October by 3.23% from a year ago, slightly faster than September’s 3.19% annual change, and now sits at $2,011.