Quote:
The 5 Least Affordable Housing Markets
1. Miami, FL
Miami continues to be the least affordable U.S. city this August, with a median home price of $610,000, 1.67% higher than the previous month. Based on the projected median household income of $44,581 and a 5.5% interest rate on a 30-year fixed rate mortgage, an average Miami family would have to set aside 87.39% of their annual income to afford a home.
2. Los Angeles, CA
Los Angeles remains the second least affordable city in the nation this month. The median list price rose slightly to $975,000 from $969,000. With a 5.5% mortgage interest rate, an average L.A. family will need to spend 85.34% of their annual income on homeownership costs.
3. New York, NY
New York City stays as third least affordable U.S. this July. The median asking price dropped to $925,000 in the past month. This is the second month where median home prices decreased month-over-month in New York City. With a projected median income of $68,129, families in New York should expect to allocate 82.47% of their annual income toward mortgage repayments and real estate taxes.
4. Newark, NJ
Newark remains the fourth least affordable housing market in the nation. The median list price for residential homes is currently $385,000. A local Newark family making a projected median income of $38,854 would have to set aside 77.52% of their annual income for mortgage payments and taxes. The homeownership burden is 1.34% higher than in July.
5. Hialeah, FL
Hialeah rounded out the top 5 least affordable housing markets this month. The median home price rose to $465,000 this August, up 3.56% from July. With a projected median household income of $40,036 and an interest rate of 5.5% on a 30-year fixed-rate mortgage, a local Hialeah family will need to spend 72.55% of their annual income on homeownership costs.
https://www.realtyhop.com/blog/housi...x-august-2022/
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Thought this was an interesting perspective, since recently we were talking about the Bay Area and its astronomical housing prices, but taking into account the astronomical income, it's not as insane as one might think.
Here's how SF and some other Bay Area cities fared. Just for fun, I thought I'd add Chicago since it's commonly viewed here as the standard for housing affordability.
7. San Francisco, CA
Household income - $126,117
Home price - $1,338,000
Share of income - 66.56%
11. Oakland, CA
Household income - $82,649
Home price - $798,000
Share of income - 60.85%
15. San Jose, CA
Household income - $122,914
Home price - $1,100,000
Share of income - 55.76%
16. Fremont, CA
Household income - $149,563
Home price - $1,338,000
Share of income - 55.14%
47. Chicago, IL
Household income - $64,367
Home price - $359,900
Share of income - 38.36%