The latest report from RealtyHop’s Housing Affordability Index, which examines what American households spend on housing in proportion to their median wages in the nation’s 100 largest cities, found that in the month of February 2023, the market with the least affordable conditions is in Miami, Florida.
dice the mortgage costs and high home priceshomeowners must plan strategically to afford the cost of owning real estate.
To calculate the index, RealtyHop uses the following statistics:
– Projected median household income
– Average listing prices of homes for sale through RealtyHop data
– local taxes to property through ACS census data
– mortgage expensesassuming a 30-year mortgage, 5.5% interest rate, and 20% down payment.
In this report, the real estate company found the following key results:
– 56% of cities became more affordable this monthindicating declining home prices and possible good news for homebuyers.
– Homeowners in 67 major cities still need to spend more than 30% of their annual income to own a home.
– In areas where population and housing costs increased during the pandemic, house prices are now beginning to decline.
According to RealtyHop, the 5 least affordable housing markets are:
1.Miami, Florida
Miami continues to hold the title of the least affordable housing market in the country. Although it became slightly more affordable this month, the report indicates that a family earning the city median income ($46,211) will still need spend a staggering 84.31% of your earnings on home ownership costs ($615,000 average price).
2. Los Angeles, California
Housing in this market has become more expensive in the past month, with the median home price rising to $965,000. A household earning a median income of $71,466 must allocate 82.37% of your annual salary to own a home.
3. Newark, NJ
The city has seen home prices rise dramatically ($385,000) due to its proximity to New York City, even though median income ($39,940) is much lower than the New York City median ($70,118 ). Although Newark asking prices have decreased this month, households will still need to spend more than 74% of your checks to pay expenses associated with home ownership.
4. New York, New York
New York saw median home prices decline from $860,000 to $840,000. A household earning an average of $70,118 per year you would need to spend almost 73% of your income for the average homeowner, which equates to a payment of $4,252 per month.
5. Hialeah, Florida
Hialeah got a bit more affordable in the period. A household with a median income of $41,500 would need to spend 64.73% of his salary to buy a house in the city with an average cost of $442,500 dollars.
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