Monday, June 27, 2022
The Property Reporter
  • Home
  • News
  • Retail
  • Residential
  • Office
  • Industrial
  • Hotel
  • Buying a Home
  • Selling a Home
No Result
View All Result
  • Home
  • News
  • Retail
  • Residential
  • Office
  • Industrial
  • Hotel
  • Buying a Home
  • Selling a Home
No Result
View All Result
The Property Reporter
No Result
View All Result
Home Residential

3 markets in which housing is more affordable than its historical average

PrR by PrR
2022-06-17
in Residential
0
20
SHARES
152
VIEWS
Share on FacebookShare on Twitter


Here’s where housing is relatively affordable.


Getty Images

Home prices have skyrocketed in recent years, with CoreLogic revealing in its latest report that home prices grew by 20.9% year over year in April 2022, marking the 123rd month of price gains. Mortgage interest rates have been rising too, with some pros saying we’ll see more to come (you can see the lowest mortgage rates you may qualify for here.) And for its part, mortgage technology and data provider Black Knight concluded in a recent report: “Housing is now within a whisper of the record low affordability seen at the peak of the market in 2006.”

These affordability issues have, no doubt, led many homebuyers to wonder: How can I ever afford a house in my home city? For many, the answer is: you can’t. But we dug into data from Black Knight to look for metropolitan areas where housing affordability is actually greater now than it has been based on historical averages.

There are only three markets out of 100 that are more affordable to residents now, than they were on average from 1995-2003: Chicago; McAllen, Texas; and, Des Moines. (The company measures housing affordability using payment-to-income ratio, which looks at the share of the metro area’s median income needed to make the monthly principal and interest payment on the purchase of the average-priced home using a 20% down, 30-year fixed mortgage.) 

Black Knight also looked at areas where the payment-to-income ratio was lowest — which is an indication that housing is relatively affordable to residents. Here are the results:

10 of the most affordable major housing markets

City

Payment-to-income ratio

Milwaukee, WI

24.5%

Louisville, KY

23.9%

Pittsburgh, PA

23.3%

Chicago, IL

23.3%

Rochester, NY

23.2%

Cleveland, OH

22.8%

Cincinnati, OH

22.8%

Kansas City, MO

22.4%

Detroit, MI

22.1%

St. Louis, MO

21.4%

Housing in areas like St. Louis, Cincinnati, Chicago and Louisville tends to be more affordable partly because those markets are powered more locally, says Realtor.com chief economist Danielle Hale. “The Illinois markets, in particular, have a lot of local home shoppers as opposed to attracting home buyers from out of the area,” says Hale. (You can see the lowest mortgage rates you may qualify for here.)

You’ll notice a big difference between the payment-to-income ratios from the most and least affordable metro areas. “So far, the affordability gap remains wide between the priciest and cheapest markets,” says Bankrate analyst Jeff Ostrowski. “On the supply side, coastal markets have geographic constraints on buildable land compared to inland cities where suburban development can keep sprawling outward. The priciest markets also tend to impose stricter regulations on new construction than the less expensive metro areas,” says Ostrowski.

10 of the least affordable major housing markets

City

Payment-to-income ratio

Los Angeles, CA

69.6%

San Jose, CA

65.0%

San Diego, CA

63.8%

San Francisco, CA

58.1%

Las Vegas, NV

50.8%

Seattle, WA

48.7%

Riverside, CA

45.8%

Sacramento, CA

44.9%

Phoenix, AZ

44.5%

Miami, FL

44.2%

“Even compared to incomes, housing in these big cities is pricey. That’s at least in part because these areas are desirable and attract not only homeowner buyers, but also investors and second-home buyers who seek out the jobs, culture and cache that these cities offer. Shoppers are willing to pay a premium to be in these areas,” says Hale.

What’s more, “any of the markets with the least affordable housing have seen strong population growth and thus more demand for housing, while Midwest markets haven’t had as many people moving in, helping keep homes relatively affordable,” says Zillow economist Nicole Bachaud.



Source link

Previous Post

SeriousShops.com moving HQ to 20,721 sq. ft. warehouse/office space in Pennsauken

Next Post

Mitchell couple finds success in real estate developing, helping revive aging commercial properties – Mitchell Republic

Next Post

Mitchell couple finds success in real estate developing, helping revive aging commercial properties - Mitchell Republic

RECOMMENDED

Affordable Housing Developer Cools NIMBY-ISM with YIMBY-ISM

2022-06-27

Ares Strategic Mining Completes Purchase Agreement for 50-Acre Industrial Property

2022-06-27

MOST VIEWED

  • Fox Lake hopes to bring hotel to Mineola lakefront site; ‘Recognizing our unique position on the Chain O’ Lakes is a key driver for our progress’ – Chicago Tribune

    638 shares
    Share 255 Tweet 160
  • Doubling Down With the Derricos’ Deon boasts about ‘buying up blocks’ & promotes real estate business after foreclosure

    172 shares
    Share 69 Tweet 43
  • Historic home on 32-acre site annexed into Elgin for new industrial development free to anyone who wants to move it

    151 shares
    Share 60 Tweet 38
  • Plas Glynllifon’s new owner speaks for first time on difficult challenge to renovate mansion

    108 shares
    Share 43 Tweet 27
  • Atlanta developer plans downtown Dallas towers

    75 shares
    Share 30 Tweet 19

Recent Posts

  • Affordable Housing Developer Cools NIMBY-ISM with YIMBY-ISM
  • Ares Strategic Mining Completes Purchase Agreement for 50-Acre Industrial Property
  • Paddington Square now fully pre-let
  • EMBLEM Developments launches The Design District − Hamilton’s new landmark
  • Homebuilders Still Find Plenty of Demand in a Cooling Market

CATEGORY

  • Buying a Home
  • Hotel
  • Industrial
  • News
  • Office
  • Residential
  • Retail
  • Selling a Home
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Property Reporter

No Result
View All Result
  • Home
  • News
  • Retail
  • Residential
  • Office
  • Industrial
  • Hotel
  • Buying a Home
  • Selling a Home

© 2021 Copyright Property Reporter