"The nation's least affordable large metro areas were San Jose, San Francisco, Honolulu, Los Angeles and San Diego, where, at most, 17% of households could afford typical housing costs. Five years ago, one-fifth to one-third of households in these areas had the income to buy, according to the report. Affordability worsened most sharply in a mix of Sun Belt and Midwest metros, including Port St. Lucie and Ocala, Florida; Kansas City; and Fond du Lac and Green Bay, Wisconsin."
"Oxford Economics also noted that elevated mortgage rates remain the biggest affordability obstacle, as interest costs overwhelm principal repayments in the early years of a mortgage. Insurance premiums are also rising rapidly in states such as Florida, North Carolina and South Dakota, further squeezing buyers. While Oxford Economics highlighted income thresholds and geographic divides, a separate Bankrate analysis painted a more immediate picture of what buyers face in the open market."
San Jose, San Francisco, Honolulu, Los Angeles and San Diego have at most 17% of households able to afford typical housing costs. Five years earlier, between one-fifth and one-third of households in those metros had the income to buy. Affordability fell most sharply in Sun Belt and Midwest metros including Port St. Lucie, Ocala, Kansas City, Fond du Lac and Green Bay. Pittsburgh, Cleveland, Oklahoma City, Louisville and Memphis each have close to half of households able to afford median housing. Erie, Toledo, Canton, Wichita Falls and Florence have more than half able to buy median-priced homes. Elevated mortgage rates and rising insurance premiums are major obstacles. Median-income buyers are priced out of roughly three-quarters of homes; the annual income needed to afford the $435,000 median home is nearly $113,000.
Read at www.housingwire.com
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