Scranton, Pennsylvania also happens to be America’s most affordable housing market, according to a new report.
Reported by Zillow
An analysis of the 100 largest U.S. housing markets, comparing median household incomes in those cities to monthly mortgage payments for moderately priced homes, found that small towns in Pennsylvania were the best for buyers. I have found it to be profitable.
Scranton is known to TV fans as the setting for the hit comedy about the paper mill, The Office.
For Zillow’s purposes, a “mortgage payment” assumes that the buyer puts in a 20% down payment, takes out a 30-year fixed-rate mortgage, and pays taxes and insurance.
Scranton tops the list because monthly mortgage payments required only 22% of median household income. (Homeowners are considered responsible if they spend 30% or more of your income for housing.)
Many of the most affordable markets are in the Rust Belt, Midwest, or South (with the exception of Florida, where some are very expensive markets these days).
Youngstown, Toledo, and Akron, Ohio followed as the next most affordable markets.
Here are the top 10 most affordable markets:
Little Rock, Ark.
St. Louis, Missouri
With mortgage interest rates above 7%, mortgage affordability has become a serious obstacle for homebuyers.
“Monthly payments for a typical U.S. home now account for more than 38% of a homeowner’s income (including taxes and insurance), the highest percentage since at least 2005,” Zillow said in a report. I’m here.
Conversely, the most affordable markets include San Francisco, where mortgage payments for a typical home are 83% of median household income.
This is followed by Los Angeles, Honolulu, San Diego and Ventura, California.
Thinking about the housing market? Write to MarketWatch reporter Aarthi Swaminathan ([email protected]).