The RealtyHop July 2023 Housing Affordability Index examined what American households in the 100 largest cities should spend on housing, finding that Detroit, Michigan is the most affordable.
“With interest rates above 7% and high home prices, many potential buyers are holding off on property purchases. Low inventory still affects most markets across the country, where those looking to purchase property have fewer options and still face competition. All of these factors combined continue to make homeownership unaffordable for the majority of potential buyers,” the real estate report says.
To calculate the index, RealtyHop uses the following statistics:
· family income projected average.
· Average listing prices of homes for sale through RealtyHop data.
· local taxes to the property through ACS census data.
· mortgage expensesassuming a 30-year mortgage, 5.5% interest rate, and 20% down payment.
The 5 most affordable housing markets, according to RealtyHop:
1. Detroit, MI
The median home purchase price decreased slightly to $79,000, and an average family can expect to spend only 15.32% of your income in mortgage payments and property taxes.
2. Wichita, KS
The city got even more affordable this month, where homeowners only need to spend 18.95% of their monthly income, or $1,000, in housing costs. Median home price is $178,000.
3. Cleveland, OH
Median purchase price increased slightly to $114,500 this month, where citizens spend about 22% of your income in housing payment.
4. St. Louis, MO
Home prices increased slightly to $185,000, and a median income family will spend 22.48% in mortgage payments and property taxes.
5. Fort Wayne, IN
Homeowners with a median household income of $59,960 spend 23.09%, or $1,151 per month in home ownership.
In counterpart:
Miami is the least affordable real estate market this July. The median listing price for a home has risen to $599,000, where homeowners can expect to spend $3,218 per month in mortgage payments and property taxes or 80.3% of their income.
Keep reading:
The least affordable housing markets in the United States, according to RealtyHop
· How far will it go? The price of housing in the US does not stop increasing
· Places homebuyers are moving to in the US.
