Just two years ago, 4.8% of homes in the United States were worth $1 million or more, but thanks to record low inventory and fast-rising prices throughout the COVID-19 pandemic, that share is now up to 8.2%, says The New York Times. Housing affordability is becoming increasingly hard to find across the U.S., and the number of housing markets with starter homes listed below $150,000 is quickly dropping.
A recent Point2 study revealed that Mesa, Arizona and St. Petersburg, Florida were the only two U.S. cities with a share of starter homes above 10%, while the most populous and expensive cities had zero affordable homes available.
The results were often hyperlocal, with neighboring cities having wildly different markets. For example, in the Phoenix satellite city of Mesa, the share of affordable homes was nearly 15 percent; in neighboring Gilbert, the share was zero. Honolulu ranked fifth among the top 10 cities with the highest portion of affordable homes, with just under 5 percent, even though it had a relatively high median home price of $870,000.
Advertisement
Related Stories
Housing Markets
States Seek Long-Term Solutions to Reform Property Taxes
Rising home prices typically lead to higher property tax assessments, which has been the case in many Mountain West states, prompting lawmakers to grapple with property tax relief
Housing Markets
Metros Where Housing Prices Have Doubled in Less Than 10 Years
Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities
Affordability
The Disappearing Act That Is Middle-Income Housing
An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it