Housing affordability was a big issue in 2023, with a record low 15.5% of homes for sale this year considered affordable for a typical household, and Chicago was no exception.

In 2023, housing affordability nationally was down from 20.7% in 2022, according to a new Redfin report. 

Chicago’s share of affordable homes fell to just 1.7% in 2023, down from 3.2% in 2022.

It wasn’t just affordability that fell last year. The number of affordable homes also tumbled, falling to their lowest level on record. In 2023, there were 352,500 affordable listings, a 40.9% drop from 2022’s 596,135 and down more than a million per year during the previous 10 years. 

Redfin says the decline is partly due to the drop in listings but also attributes elevated mortgage rates and high prices on newer listings. 

Redfin, though, expects housing affordability to improve in 2024, and Senior Economist Elija de la Campa says it’s already starting.

“Many of the factors that made 2023 the least affordable year for homebuying on record are easing,” said de la Campa. “Mortgage rates are under 7% for the first time in months; home price growth is slowing as lower rates prompt more people to list their homes; and overall inflation continues to cool. We’ll likely see a jump in home purchases in the new year as buyers take advantage of lower mortgage rates and more listings after the holidays.”