Inflation has caused many distortions that affect the affordability of housing, especially for first-time buyers. Since 1965, the price of the median-priced house in the United States has more than tripled. More important, however, the annual mortgage payment for a standard financing arrangement is almost seven times as large as before for the median-priced house. As a result, the median-income family is unlikely to qualify for and presumably would be reluctant to obtain conventional financing to buy the median-priced house today.