RealtyHop released the Housing Affordability Index for June 2023, where Detroit remains the most affordable real estate market this month in the United States.
“With the Federal Reserve holding interest rates at all-time highs since 2007, many cities have reported fewer transactions compared to previous months. However, the effect of the rate hikes has been more moderate than economists had anticipated, which means that home prices, despite the cooling, remain unaffordable for many families in the United States. real estate report.
Among the results of the study, it stands out that:
· Homeowners in 69 major cities must spend more than 30% of their annual income on homeownership; That’s three more cities than last month, adding Albuquerque, NM, Henderson, NV and Lexington, KY.
· In the 25 most unaffordable housing markets in the country, homeowners spend more than 40% of their income on home ownership.
· Median purchase price increased this month in four of the least affordable housing markets: Miami, FL, Newark, NJ, New York City, NY and Hialeah, FL.
· The two most affordable housing markets, Detroit, MI, and Wichita, KS, became more affordable this month.
The good news is that there are still cities in the country that are still affordable for citizens.
The 5 most affordable housing markets, according to RealtyHop:
- Detroit, Michigan
Detroit continues to be the most affordable housing market this month. Median home purchase price decreased slightly to $80,000. Here a family with a median household income of $35,893 will only spend 15.85% of their annual income, or $474 per month, on mortgage payments and property taxes.
- Wichita, Kansas
Wichita is the second most affordable housing market in the country. This month, the city became even more affordable, with homeowners putting 19.13% of their income toward the cost of housing, down 1.62% from May. The median purchase price in this city is $176,000.
- Cleveland, Ohio
The Cleveland real estate market again ranks as the third most affordable nationally. Potential households purchasing a median home value of $112,000 should expect to set aside 21.88% for home ownership costs.
- Saint Louis, Missouri
This month St. Louis moved up one spot to become the fourth largest affordable housing market. Homes became more expensive, with the median sales price rising to $184,900. A family looking to own property in St. Louis must set aside 22.86% of their annual income for mortgage payments and property taxes.
- Fort Wayne, Indiana
Fort Wayne became the fifth most affordable city in the country. Homeowners with a median household income of $59,960 will have to put 22.87% toward home ownership. Median sales price here is $214,900.
For more details on the report, go here.
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