Nevertheless, house prices continue to rise. In the largest and most desirable US cities, A house worth over $ 1 million It exploded and almost doubled compared to the pre-pandemic era. And while this may be great news for those who already own a home, it’s definitely intriguing for homebuyers. But for those looking for affordable homes, Mesa leads the nation in the number of affordable homes available.
Therefore, rising prices mean that the threshold for what can be considered an affordable home is also rising. $ 150,000 may still make sense for homebuyers in certain parts of the country, but little for those who want to ride. Residential ladders in the top 50 most populous cities. There is an increasing shortage of properties that should be the opposite of ultra-luxury homes, whether they are called entry-level homes, starter homes, or just cheap homes.
Read again: Is the housing market collapsing in 2022?
So, to measure if your current home inventory is less than $ 150,000 and see if homebuyers can get something more at this minimum home price, Analyzed the share of cheap homes In 50 of the most expensive and desirable US cities.
The results show that in 46 of the 50 metropolitan areas, less than $ 150,000 homes account for less than 5% of all homes currently on the market. In addition, few homes cost less than $ 100,000. Unfortunately, what was considered an affordable home for first-time homebuyers is now simply disappearing.
For more information, check out the key findings below.
• In 25 big cities, less than $ 150,000 homes represent less than 1% of all homes currently on sale.
• Only two cities, Mesa, Arizona and St. Petersburg, Florida, have a 10% to 15% share of affordable housing.
• Henderson, Nevada. Gilbert, Arizona; San Francisco, CA; Irvine, CA; Oakland, Calif. At the time the data was collected, there were no homes priced less than $ 150,000.
• Of the four cities with a median of over $ 1 million, only Fremont, CA and San Jose, California sell affordable homes. 1% in Fremont and 0.3% in San Jose.
Mesa and St. Petersburg are unconventional.Affordable housing share is over 5% in the other two cities
Even the cities with the highest share of affordable homes do not have a particularly impressive number. Mesa, Arizona and St. Petersburg, Florida Affordable homes can account for more than 10%, but they are outliers.
Similarly, Dallas, Texas and Tampa, Florida have an affordable housing share of just over 5%.However, all the remaining cities with the highest share of affordable inventory have posted well below 5%.
In particular, the median of all 50 cities does not strongly correlate with affordable inventory share, no matter how high or low the share of homes under $ 150,000. for example, Median home prices for Mesa and Sacramento are similar, but the share of homes under $ 150,000 is significantly different...
There is no correlation between median home prices in a particular city and affordable home prices, and there is also a correlation between high inventories of luxury homes and low inventories of affordable homes. That there is no Affordable discussion Rather than seeing it. For example, some cities have many expensive homes, but there is also a decent inventory of more affordable homes, while others seem to have no room for more affordable units. .. Zoning methods and land prices also play a major role in affordable price discussions, but many other factors also influence this aspect.
Different types of homes can be purchased in different cities for $ 150,000.. Not surprisingly, this money is very useful in the more affordable cities and regions of the country. But at a really expensive and most desired city hub, $ 150,000 means almost nothing. And even cities in the same state, just a few miles away, can show huge disparities. For example, in Mesa, Arizona, you can buy it for $ 110,000. 2 bedroom, 2 bathroom, 1,560 sq ft houseGilbert, Arizona is less than 10 miles away, but it costs about $ 285,000 to buy the cheapest one. 2 bedroom, 2 bathroom house Currently on the market.
Scroll through the table below to see a complete list of cities included in the analysis, their median home prices, and a share of affordable homes under $ 150,000.
In the five largest cities in the United States, it’s unlikely that you’ll find a starter home.
With home prices breaking new records almost every week, it’s no wonder that inventories of luxury homes and ultra-luxury homes for sale are increasing. But this means that more and more Americans are stuck in renting a month after a frustrating month because there are no more affordable options.
A million dollar home increase shouldn’t necessarily come at the expense of affordable homes, but it does. Affordable homes change their definition overnight as million-dollar homes become the norm. As a result, as with the number of luxury homes, the threshold for what can be considered affordable is rising.
for example, San Francisco, CA; Irvine, CA; Oakland, CA; Gilbert, Arizona and Henderson, Nevada have no homes for less than $ 150,000... In fact, California has another city in the top 10 with the lowest market share of homes under $ 150,000 currently on the market. San JoseOnly 0.28% of all homes for sale are in this most affordable category.
Arizona is the second state to appear multiple times in the Top 10.: Very few are registered here because the stocks in the three cities are very low.
• To identify the 50 largest and most expensive cities in the United States, we looked at the median population and home prices of the top 100 most populous cities in the United States.
• We ranked the 100 most populous cities based on the median home price, and then looked at the number of homes under $ 150,000 in each of the top 50 most expensive cities.
• For the final list of active lists for each city, we looked up and counted the lists from Point2, Zillow, Redfin, and Realtor.com. After eliminating duplication, we selected and used the source with the highest number of available lists to calculate the share of affordable real estate and create the final ranking.
• The survey was based on all active lists at the time of analysis (last week of March 2022).