Those who spend over 30 percent of their income on monthly housing payments are considered “cost burdened,” according to the Department of Housing and Urban Development (HUD), and as housing costs continue to rise, that’s the official designation for a growing number of homeowners in the largest U.S. cities. Luckily, a few affordable metros are still offering budget conscious buyers and first-time house hunters a viable starting point in the race to homeownership.
Wichita, Kansas ranks as the most affordable metro in RealtyHop’s December 2022 Housing Affordability Index with a median sale price of $145,000 and an average monthly payment of $816, accounting for just 16 percent of the local median household income of $59,861, The New York Times reports.
Ultimately, 75 of the 100 cities included in the report did not pass muster, requiring more than 30 percent of income to afford a home. The least affordable was Miami, where the median-priced home costs $598,000 and would require a monthly payment of $3,183 to cover mortgage and taxes — more than 85 percent of the local median household income of $44,581 (or $3,715 a month). Los Angeles and New York followed — no surprise given their steep home prices.
Advertisement
Related Stories
Business Management
How 2023's Housing Market Conditions Are Affecting the 2024 Housing Market
Last year ended on an optimistic note, but persistent headwinds still exist to keep 2024 from getting the housing market back to pre-pandemic levels
Affordability
Median US Down Payment Falls by More Than $4,000
The recent decrease in costs is welcome relief for homebuyers, but many West Coast markets remain expensive
Housing Markets
10 Biggest Publicly Traded Home Builders Undeterred by High Mortgage Rates
Together, the 10 biggest builders recorded 77,255 new homes in Q1 2024, an increase of more than 18% from Q1 2023