5 most and least accessible metro areas



sign in front of the house: the house is for sale

© Sandy Huffaker / Getty Images
house for sale

sign in front of the house: the house is for sale

© Courtesy of Bankrate
house for sale

Taking money from the salaries of some Americans and creating lack of housingthe coronavirus hit availability of housing… However, countering trends that softened the blow to shoppers’ budgets, the pandemic has driven mortgage rates to record lows.

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Housing prices have risen at a record pace over the past year. The National Association of Home Builders (NAHB) estimates that the median price of all new and existing homes sold in the United States rose to $ 350,000 in the second quarter of 2021 from $ 300,000 in the spring of 2020.

The skyrocketing prices make it harder for Americans to afford housing. Only 56.6% of homes sold in the second quarter were available to households with regular income. According to NAHB / Wells Fargo Housing Opportunity Index

3 factors determine availability

The builders index takes into account three variables – income, house prices and mortgage rates. An affordability study shows that house prices across the country have skyrocketed in recent months. The median home price rose to a record $ 350,000 in the second quarter of this year.

In a trend that partially compensates for the squeeze in accessibility, average mortgage rates rose slightly, but remained at 3.09 percent. According to the NAHB / Walls Fargo Index, this is above a fourth-quarter record low of 2.85 percent.

While the fall in mortgage rates has created a tailwind for affordability, there is a major hurdle – home prices are rising much faster than wages. According to the index, average incomes will grow by just 2 percent between 2020 and 2021, compared to a 14 percent jump in home prices.

Meanwhile, those who are still working are raising their home prices. Supply wars have erupted in many areas.

“More housing is needed to bring house price increases back to sustainable levels,” said NAHB chief economist Robert Dietz in a statement.

However, the pandemic has led to another unintended consequence: prices for building materials have skyrocketed. “The unstoppable rise in construction costs, such as the continued rise in prices for oriented strand board, which has surged nearly 500 percent since January 2020, continues to put upward pressure on house prices,” said NAHB Chairman Chuck Foke in a statement.

Gallery: US Cities with the Most Economic Growth in 2021 (Money Talks News)

5 most accessible metro areas

Housing prices and incomes vary widely, and there are oases of affordability, mostly in the Rust Belt and Midwest. Five of the most affordable places among megacities with a population of 500 thousand people:

Pittsburgh: In this area of ​​the city, the median household income is $ 84,800 and the median home price is only $ 165,000. As a result, 90.6% of homes were affordable for ordinary people.

Lansing, Michigan: As a result of moderate home prices, 90.5% of all new and existing homes sold in the spring were available to families with a median income in the area of ​​$ 79,100. The median home price was $ 149,000 in the second quarter of 2021.

Youngstown, Ohio. In this area of ​​the city, the median household income is $ 65,200, and the median home price is only $ 120,000. As a result, 90 percent of homes were affordable for ordinary people.

Scranton Wilkes Barre Hazleton, PA: Wages here are below national levels, but so are home prices – the average selling price in the second quarter was only $ 135,000. As a result of extremely low prices, 89.9% of all new and existing homes sold in April, May, and June 2021 were available to families with an average income of $ 70,600 in the area, according to the NAHB.

Harrisburg-Carlisle, Pennsylvania: With a median household income of $ 84,900 and an median home price of $ 182,000, a total of 89.6 percent of homes were available to middle-income families in the state capital.

5 least accessible areas

At the opposite end of the affordability range, California dominates. Least available markets in the country:

Los Angeles-Long Beach-Glendale: In a market with an average home price of $ 780,000, Los Angeles’ median income of just $ 78,700 doesn’t go far. As a result, only 8.4% of homes were available to typical families.

San Francisco-Redwood City-South San Francisco: Incomes here are high – an average of $ 143,400. Prices are even higher – a typical home went for $ 1.47 million. This means that just 11.4 percent of homes sold in the fall months fall within the range of affordability for middle-income families in the area.

Anaheim-Santa Ana-Irwin: Orange County’s income is high: The typical household makes $ 104,800 this year. But home prices are higher, averaging $ 895,000. This means that only 13.4% of homes are affordable for average families.

San Diego-Carlsbad: In San Diego, the median household income is $ 95,100 and the median home price is $ 725,000, which means that only 16.8 percent of homes fall within the typical buyer’s budget.

Ventura, California: The median household income in Silicon Valley is $ 98,800, but a typical home sells for $ 710,000. This meant that 20.2 percent of homes sold were affordable.

Housing affordability is an ongoing concern in California and other regions with high demand and small new building since the Great Recession.

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