What are the most unaffordable cities in the United States?
A Northeastern city is the most affordable in the United States In 2021, 27 American real estate markets were extremely unaffordable, according to a study.
With US home prices soaring 19.2% in the 12 months to January, it is clearly difficult for non-wealthy people to afford a home.
“There has been a strong trend away from affordability,” according to a study of global housing markets by the Urban Reform Institute in the United States and the Frontier Center for Public Policy in Canada.
“The number of extremely unaffordable markets increased by 60% in 2021 compared to 2019, the last pre-pandemic year.”
In the United States, 27 housing markets were classified as severely unaffordable in 2021, nearly double the 14 in 2019, according to the study.
It defines severely unaffordable as markets where the median home price is at least 5.1 times the median income. The study calls this a multiple of the affordability score.
California has the greatest concentration of extremely unaffordable markets, with four of the five costliest markets in the country relative to income. These cities are San Jose (with an affordability rating of 12.6), San Francisco (11.8), Los Angeles (10.7), and San Diego (10.1). Honolulu arrived at age 12.
Other extremely unaffordable markets include Miami (8.1), Seattle (7.5), Riverside-San Bernardino (7.4), Denver (7.2), New York (7.1), Boston (7, 0) and Portland (7.0).
Most affordable: Pittsburgh
The most affordable US housing markets are Pittsburgh (with a median multiple of 2.6), Oklahoma City (3.3), Rochester, NY, (3.3), St. Louis (3.6), Cleveland ( 3.7), Cincinnati (3.8), Buffalo, NY, (3.9), Kansas City, Missouri, (4.0), Louisville, Ky., (4.0), and Tulsa, Okla. (4.0).
These cities have the most affordable housing markets in the world, along with Edmonton, Alberta (3.6) and Calgary, Alberta (4.0).
The most expensive global real estate markets are Hong Kong (23.2), Sydney (15.3), Vancouver (13.3), San Jose and Melbourne (12.1).
Much of the recent US housing news has been dismal for buyers, with soaring home prices, rising mortgage rates and limited inventory putting a halt to potential purchases.
Increase in housing starts
Here is some good news. Housing starts increased unexpectedly in March – 0.3% from February to the highest level since 2006. That’s a seasonally adjusted annual rate of 1.79 million. Apartment/condo buildings led the way.
Building permits also gained in March – 0.4% from February to a seasonally adjusted annual rate of 1.87 million.
Home builders are nonetheless pessimistic. The National Association of Home Builders / Wells Fargo Housing Market Home Builder Confidence Index fell to a seven-month low in April.
“Rapidly rising interest rates, combined with continued rising home prices and rising construction costs, continue to weigh on builder confidence and housing affordability,” the NAHB said in a statement. communicated.
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This story was originally published April 19, 2022 3:07 p.m.