The 5 markets where Americans should allocate more resources to pay for housing

In this September edition of RealtyHop’s Housing Affordability Index, it examined what American households in the 100 largest cities need to spend on housing, finding that Miami, Florida is the most expensive.

Among this month’s key results are:

· Homeowners in 66 major cities must spend more than 30% of their annual income on homeownership; that’s two less than last month.

· In the 25 most unaffordable housing markets in the country, homeowners still spend 40% or more of their income on home ownership costs.

· The median list price increased this month in two of the least affordable real estate markets: Miami and Hialeah.

· Housing costs decreased or remained unchanged in the five most affordable housing markets.

· The five least affordable real estate markets, according to RealtyHop:

1. Miami, Florida

The median list price of a home increased to $615,000 and homeowners can expect to spend $3,304 monthly on mortgage payments and property taxes, about 82.4% of their income. The city continues to deal with low inventory and current owners of lower-value homes are renovating to increase their potential sales price.

2. Los Angeles, California

The median sales price of $929,000 did not change this month, and families can still expect to spend 77.29% of their annual income on homeownership costs.

3. Newark, New Jersey

The median home purchase price increased slightly this month, meaning residents with a household income of $41,045 must spend 74.14% of that amount on their mortgage and property taxes.

4. Hialeah, Florida

Home prices continue to rise in Hialeah as people who cannot afford to live in Miami shift their focus to more affordable nearby cities. Buyers with a median income of $43,219 can expect to spend 67.52% on housing costs, where the median property value is $469,900.

5. New York, New York

Home prices decreased to a median of $780,000 and buyers can now expect to spend $3,980 per month, 66.2% of their income.

On the other hand, Detroit, Michigan, remains the most affordable real estate market this month. The median home purchase price decreased to $78,850, meaning the average family would need to spend just $467 per month on homeownership costs—i.e. 15.3% of their income.

Keep reading:
· Real estate market myths that affect buyers and sellers in the US today.
· 30-year mortgage rate remains firm above 7% and home buyers resent it
· Places homebuyers are moving to in the US.