Business

The 5 least affordable housing markets in September according to RealtyHop

In the September edition of RealtyHop’s Home Affordability Index, the real estate company examined the proportion of income that American households would have to spend on homeownership costs, finding Miami, Florida to be the most unaffordable this month.

RealtyHop’s Home Affordability Index analyzes homeownership and census data from the survey conducted by the US Census Bureau (ACS) to provide an index of home affordability and homeownership burden housing in the 100 most populous cities in the country. Median home prices are calculated using over 300,000 listings in the RealtyHop database for the month prior to publication.

To calculate the index, the following statistics are used: Projected Median Family Income; Median listing prices of homes for sale via RealtyHop data; Local property taxes through ACS census data; and Mortgage expenses, assuming a 30-year mortgage, 5.5% interest rate, and 20% down payment.

The 5 Least Affordable Housing Markets, According to RealtyHop

1. Miami, Florida

Despite a slight price correction, Miami continues to rank as the least affordable real estate market in the entire country. The median home price fell from $610,000 to $600,000, down 1.64% from August. Based on the projected median household income of $44,581 and an interest rate of 5.5% on a 30-year fixed-rate mortgage, typical families seeking homeownership in Miami would need to allocate 85.96% of their annual income to housing costs. home ownership.

2. Los Angeles

Los Angeles remains the second least affordable US city this September. The median home price dipped slightly to $965,000. With a mortgage interest rate of 5.5%, the average Los Angeles family has to spend 84.46% of their annual household income on mortgage payments and property taxes.

3. New York

While New York City retained the title of the third least affordable city in the US, the median list price dropped to $900,000. This is the third month that median home prices have declined month-over-month in New York. With a projected median income of $68,129, an average New York household would have to allocate 80.24% of their annual income to own property. This figure is 2.70% lower than that of August.

4. Newark, NJ

Newark is the fourth least affordable US real estate market. The median sales price is holding steady at $385,000. A typical Newark family with a projected median income of $38,854 should expect to spend 77.52% of their annual household income on homeownership costs, including mortgage payments and property taxes.

5. Hialeah, Fla.

Hialeah completed the top 5 least affordable housing markets this September. The median home price increased marginally to $466,000 from last month. With a projected median household income of $40,036 and an interest rate of 5.5% on a 30-year fixed-rate mortgage, a local Hialeah family will need to allocate 72.71% of their annual income to homeownership costs.

According to RealtyHop, 63% of the cities in the index experienced declines in asking prices, including Miami, Los Angeles, New York, Boston, Austin and Sacramento, signaling the start of a housing recession accompanied by a decline in sales and housing starts.

With an overheated housing market, interest rates above 5% and inflation at its highest since 1981, buyers are struggling to find homes within their budget. As more and more potential buyers pause buying, sellers are being forced to lower their expectations and adjust to a market that is finally cooling off after two record years.

Leave a Reply

Your email address will not be published. Required fields are marked *