Top Ten Cities of Low-Affordability Housing in US – Income Versus Cost

According to the National Association of Realtors, home sales rose 10 percent in April over last year.

By year’s end, year-over-year sales could be up 13 percent, the report stated. As the housing market develops and mortgage rates are still holding at low record levels, the price of home ownership may be a current practical goal for many people. The housing market, with a swift decline in 2006 that brought the U.S. economy down, as well, may be making a comeback.

American household earnings during low affordability periods

An American household earning the national median of a $65,000 income level could comfortably afford to purchase 77.5 percent of the houses sold on the housing market during the first quarter of the current year. This has risen from 75.9 percent since last quarter, in lieu of the freshly released Housing Opportunity Index by the National Association of Home Builders and Wells Fargo, this index compares home prices and mortgage rates with an area’s median household income.

 

During low affordability periods housing markets are volatile
Data suggests that homeownership is definitely becoming more affordable, yet various local markets remain out of grasp for a multitude of the U.S. population. I recently had a chance to speak with my colleague “Hammer” Smith (a Realtor in Bay Area, CA) and he feels according to trending reports that a better school district will be a major factor in where people decide to buy homes.  He also stated “according to market conditions and housing reports: prices are down by up to 30 percent and value of the higher end is declining. The next five to seven years will have a wave of higher end foreclosures to come. For now for the low end home market is picking up and the rate of decline is reducing due to lack of inventory. As far as the next fifteen years, we should be optimistic and things will be back to normal”. In relation to the NAHB and Wells Fargo Housing Opportunity Index: compiled below are the least affordable housing markets.

Low Affordability Homes
-Top Ten List (sorted by rank)

1. Honolulu, HI

  • Highlights: University Of Hawaii, First Hawaiian Center
  • Median Home Price = $409,000
  • Median Income = $82,700

2.  New York, White Plains-Wayne, New York-New Jersey

  • Highlights: Statue of Liberty, Long Beach Island
  • Median Home Price = $400,000
  • Median Income = $68,200

3. San Francisco-Redwood City-San Mateo

  • Highlights: China Town, Pier 39, San Mateo County Fair
  • Median Home Price = $549,000
  • Median Income = $102,900

4. Sunnyvale- San Jose, CA

  • Highlights: Sunnyvale Art & Wine Festival, San Jose Convention Center, H.P. Pavilion
  • Median Home Price = $420,000
  • Median Income = $105,000

5. Norwalk-Bridgeport-Stanford, CT

  • Highlights: Lockwood-Mathews Mansion Museum, Housatonic Museum of Art, NBC Sports Network
  • Median Home Price = $305,000
  • Median Income = $87,100

6.  Paso Robles-San Luis Obispo, CA

  • Highlights: Wineries, Historical Community
  • Median Home Price = $315,000
  • Median Income = $75,400

7. Anaheim-Santa Ana, Irvine, CA

  • Highlights: Disneyland, University Of California- Irvine
  • Median Home Price = $384,000
  • Median Income = $85,300

8. Watsonville, Santa Cruz, CA

  • Highlights: Strawberry Festival-Watsonville, Santa Cruz Beach Boardwalk
  • Median Home Price = $365,000
  • Median Income = $87,000

9. Los Angeles, Long Beach-Glendale, CA

  • Highlights: Hollywood Boulevard, Long Beach Grand Prix
  • Median Home Price = $295,000
  • Median Home Price = $365,000

10.  Ocean City, NJ

  • Highlights:  Boardwalk, Wharf
  • Median Home Price = $345,000
  • Median Income = $71,100

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