A recent study by Ksenia Potapov, an economist for First American Financial, reveals that the median renter can afford 50% or more of the homes for sale in just four U.S. markets—assuming one-third of their pre-tax income is used for a mortgage with a 5% down payment. The median renter could afford 59% of the for-sale homes in Buffalo, N.Y., and 56% of the homes in Pittsburgh, 54% in Detroit, and 54% in Cleveland.
In contrast, the average U.S. renter can currently afford just 1% of available homes in Los Angeles, 2% in San Diego, 2% in San Francisco, and 4% in Salt Lake City, HousingWire reports.
“Pre-pandemic, Salt Lake City was an affordable market that fell in the middle of the pack out of the top 50 U.S. markets,” Potapov wrote. “However, rapid house price appreciation during the pandemic dragged Salt Lake City near the bottom of the affordability list. In the fourth quarter of 2019, the median renter could afford 69% of the homes for sale in Salt Lake City. Now, the median renter can only afford 4% of homes.”
Advertisement
Related Stories
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
Market Data + Trends
A Look at Homeownership Rates Across the Nation
Data for homeownership rates in the 100 largest US cities show Port St. Lucie, Fla., in the top spot, while West Virginia is the state with the most homeowners