5 Most Affordable Housing Markets
According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index, nearly 65% of new and existing homes sold between the beginning of October and the end of December, were affordable to families earning an average income of $64,400. This is largely unchanged from the third quarter index.
The NAHB/Wells Fargo Housing Opportunity Index shows that Youngstown-Warren Boardman, Ohio-PA, is the most affordable major housing market in the country. 89.4% of all new and existing homes sold in the fourth quarter of 2013 were affordable to families earning an average of $53,900.
These are the top five most affordable major housing markets:
1. Youngstown-Barren Boardman, Ohio-PA.
2. Harrisburg-Carlisle, PA.
3. Syracuse, NY.
4. Buffalo-Niagara Falls, PA.
5. Scranton-Wilkes-Barre, PA.
The most affordable smaller market was Kokomo, Ind. 96.3% of homes sold in the fourth quarter of 2013 were affordable to people earning $60, 100.
The index also showed that the most expensive major housing market in the country continues to be, for the fifth consecutive quarter in a row, the San Francisco-San Mateo-Redwood City, CA area. Only 14% of homes sold in the fourth quarter of 2013 were affordable to the area’s average income of $101,200.
The National Association of Realtors also released its Housing Affordability Index, which shows that rises home prices are starting to hamper affordability throughout certain parts of the country, specifically in the West.
While the vast majority of home owners have had significant gains in equity over the past two years, which is helping the economy, home prices are rising faster than incomes, and mortgage interest rates are rising. This is starting to affect housing affordability.