The five least affordable housing markets in the U.S. revealed

According to new research from Reality Hop, Miami came in first on the list of the least affordable housing markets in the United States, followed by New York and Los Angeles, while the most affordable are Wichita, Kansas, and Fort Wayne, Indiana.

A December survey of real estate found that in the 100 largest cities in the United States, 75 of them require households to spend at least 30 percent of their income on housing.

US households that spend more than 30 percent of their income on housing are considered ‘cost-burdened,’ according to the Department of Housing and Urban Development.

The study was conducted on homes with a 30-year fixed rate mortgage with an interest rate of 5.5 percent. Earlier this month, the Federal Reserve stepped up its fight against inflation by raising its key interest rate for the seventh time this year and hinting at more hikes.

South Beach's panoramic high-rise at Miami South Pointe Park, in a city where families have to pay 85.67 percent of their income for housing.

South Beach’s panoramic high-rise at Miami South Pointe Park, in a city where families have to pay 85.67 percent of their income for housing.

In Miami, families have to pay 85.67 percent of their income on housing, where the median home price in the city is $560,000. According to Reality Hop, there were no changes in the seven most expensive cities between November and December.

Los Angeles demands 83 percent of income, New York residents have to spend 79 percent to live in the Big Apple, while across the Hudson River, Newark residents have to spend 75 percent- will receive their income and in Hialeah, just west of Miami, 72 percent of monthly income is required.

The median cost of a home in Los Angeles is $965,000, while in New York City, the median price is $749,000.

Among the ten least affordable cities were San Francisco, Long Beach, Oakland, San Diego and Jersey City, New Jersey.

It was Oakland that saw the biggest jump in the lack of affordability when home prices in the city rose from $812,500 to $850,000. Between November and December, Bay’s bright side went from 11th to 8th on the impotence list.

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Among the homes for sale in Miami is Joe Jonas and Sophie Turner’s waterfront home that the couple bought in 2021 for $11 million and are now looking to sell for $17 million.

A separate study conducted earlier this year found that Miami-Dade County, home to two Florida representatives on the least affordable list, is only the sixth wealthiest county in Florida.

On the market: Joe Jonas and Sophie Turner have listed their stunning Miami home for $17 million;  a pair is seen in October

On the market: Joe Jonas and Sophie Turner have listed their stunning Miami home for $17 million; a pair is seen in October

Los Angeles asks for 83 percent of income, New York residents have to spend 79 percent to live in the Big Apple.

Los Angeles asks for 83 percent of income, New York residents have to spend 79 percent to live in the Big Apple.

The rising cost of living makes housing in large metropolitan cities more expensive

The rising cost of living makes housing in large metropolitan cities more expensive

The most affordable housing markets are found in Wichita, Kansas, Fort Wayne, Indiana, Detroit, Cleveland and Lubbock, Texas.

In Wichita, the median home price is only $145,000, in Fort Wayne, the median price is around $165,000 and in Detroit, the price is only $90,000.

Other cities on the cheapest list were Louisville, Kentucky, Anchorage, Virginia Beach, Omaha and Pittsburgh.

Between November and December, the city of Chandler, Arizona, dropped seven spots on the list as home prices fell 4.5 percent.

Overall in the United States, existing home sales fell 7.7 percent from October to November, according to the National Association of Realtors — and November sales were down 35.4 percent year over year.

The current ten-month losing streak is the longest in data dating back to 1999, the NAR added.

Going in the opposite direction on the Reality Hop list was Orlando, which rose eight spots as home prices rose from $357,000 to $370,000. Current statistics say that the average household needs to use 40 percent of their income to pay for housing.

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Of the ten least affordable cities in the United States, two are in Florida, three are in New York and New Jersey, and the other five are in California.

The ten cheapest cities are spread across ten different states.

The report says: ‘As interest rates continue to rise, and housing sentiment declines, many potential buyers continue to question whether they will ever be able to afford a home.’

On the positive side, the study showed that 57 percent of US cities have become more affordable.

U.S. existing home sales fell again in November, marking the tenth consecutive month that the market has declined, and extending the longest streak of declining sales in 23 years.

Existing home sales fell 7.7 percent in November from October, according to the National Association of Realtors — November sales were down 35.4 percent year-over-year.

Real estate experts are advising home buyers to avoid Austin, Phoenix, Las Vegas and other areas in the Sun Belt as prices will plummet in 2023, and instead invest in the Midwest and Northeast where houses retain their value.

Real estate experts are advising home buyers to steer clear of Austin, Phoenix, Las Vegas and other areas in the Sun Belt as prices may drop in 2023, and instead invest in the Midwest and Northeast where houses retain their value.

US median home prices fell to $417,000, a new report revealed - although its authors said it may still be too early to get out and buy

US median home prices fell to $417,000, a new report revealed – although its authors said it may still be too early to get out and buy

The rate of existing home sales has decreased by 35.4 percent since January

The rate of existing home sales has decreased by 35.4 percent since January. For a variety of reasons, including the doubling of the 30-year mortgage waiting period, Americans are holding back on buying homes.

The 30-year mortgage rate fell slightly to 6.7 percent in November, from 6.9 percent in October.

The 30-year mortgage rate fell slightly to 6.7 percent in November from 6.9 percent in October. Although at the beginning of the month, the rate exceeded 7 percent

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The current ten-month losing streak is the longest in data dating back to 1999, the NAR added.

Existing home sales fell 37 percent from their previous peak in January.

The 30-year mortgage rate, which topped 7 percent in the early weeks of November, eventually fell to an average of 6.7 percent, down from 6.9 percent in October.

The current rate remains more than double the 3.1 percent it was at the end of 2021.

Mortgage rate hikes that have increased expected monthly payments by hundreds of dollars have driven many potential buyers out of the market.

Home prices are up 3.5 percent from last November, when they were $353,900, down to $370,700, but down $413,000 from a peak in June.

NAR’s chief economist, Lawrence Yun, said the newly released figures ‘clearly reflect this rapid rise in mortgage rates.’

As the Central Bank continues to raise interest rates to curb inflation, the housing market continues to cool.

This week real estate brokerage firm Redfin published a list of the best and worst places to buy a home in the United States. The top cities where prices will increase in 2023 are Milwaukee, Chicago, Lake County, Illinois, Albany and New Haven, Connecticut.

The worst places were Las Vegas, Phoenix and Austin, Texas. Among the nation’s most populous cities, Las Vegas, Phoenix and Austin led the way in expected sales declines. Sales in Vegas in November were down 63.8 percent from a year earlier, Phoenix was down 58 percent and Austin was down 57.7 percent.

“If you want to avoid a situation where you’re buying a house, and then it’s going to go down in value over the next few months, I would avoid the Sun Belt,” Fairweather told Fox Business.

Instead, the real estate expert said the safest investments would be in the ‘Midwest and Northeast, because those areas tend to hold their value.’

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