Home News The 15 housing markets in America that are now actually more affordable than they were in 2005

The 15 housing markets in America that are now actually more affordable than they were in 2005

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“Affordable price deterioration seems to be affecting demand, and prices may peak or be moderately adjusted in some markets,” one professional told MarketWatch Picks.

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Rising home prices and mortgage rates have made home ownership affordable in many parts of the United States. Indeed, home prices have risen 20% over the past year, mortgage rates have risen from about 3% to about 6% this year, and some professionals say they’re even higher ().Here you can see the lowest mortgage rates you might qualify). And now, with a few major exceptions, the vast majority of counties in the United States aren’t as affordable as they used to be.

In fact, the median home prices for 560 of the 575 counties analyzed in the second quarter 2022 U.S. Home Buyability Report by real estate data firm ATTOM are now compared to their 2005 averages. Is not affordable. Living in this area is a major monthly homeownership with a median single-family home mortgage, real estate tax, insurance, etc., assuming a 20% downpayment and a 28% maximum debt-to-income (DTI) ratio. I had to meet the cost. (To calculate the DTI, add up your monthly expenses, including mortgage payments and insurance, and divide the total by your total monthly income. The result is in the form of a percentage that reflects your DTI.)

“Few local markets have been able to escape the dramatic rise in home prices over the last few years. If prices rise and rewards can’t keep up, things won’t be affordable,” Nerd Wallet data said. Analyst Elizabeth Renter said: So where are these places where people can afford to live?

10 counties that are more affordable than in the past

County, state

Percent of annual income required to buy a house

Hennepin, Minnesota


Fulton, Georgia


Harris, Texas


Franklin, Ohio


Oakland, Michigan


Cook, Illinois


St. Louis, Missouri


Philadelphia, Pennsylvania


Cuyahoga, Ohio


Allegheny, Pennsylvania


Here you can see the lowest mortgage rates you might qualify..

Bankrate.com analyst Jeff Ostrowski said that affordability is primarily a function of supply and demand, with the most affordable counties in the Rust Belt region, where population and employment growth is low and therefore new housing demand is relatively low. It is often said that there are.

Still, it’s important to remember that these counties are exceptions to the rule. In general, affordability of housing is deteriorating in most counties. “Affordability is a national issue for a variety of reasons,” says Ostrovsky. Reasons include inventory shortages and rising mortgage rates, he adds. “Real estate prices are skyrocketing almost everywhere, and home prices have outpaced wage growth over the last two years,” says Ostrowski. The largest and most affordable counties include Los Angeles County, California. Maricopa County, Arizona; San Diego County, California; Orange County, California; and Kings County, New York.

That said, “Affordable deterioration seems to be affecting demand, and in some markets prices can be flat or moderately adjusted. Many potentials. Buyers may choose to continue renting until market conditions improve. Others may adjust their gaze to look for smaller properties or homes further away from major metropolitan areas. “No,” said Rick Sharga, Executive Vice President of Marketing at ATTOM.

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