In this November installment, we analyzed the least and most affordable housing markets in the 100 most populous cities in the United States using proprietary RealtyHop data and U.S Census data to find out:
In what cities is homeownership affordable or possible for the average American family?
This month saw very little change from October 2021, with the least and most affordable housing markets remaining almost the same. Read on to see if your city makes the list.
The 5 Least Affordable Housing Markets
1. New York, NY
No surprise here. New York is the least affordable housing market in the country for the fifth month in a row, with the average home costing $960,000. A New York family would need to spend 82.32% of their income on homeownership in this city.
2. Miami, FL
For the second month in a row, Miami is the second least affordable housing market in the U.S. While the average home price, at $550,000, is far less than New York City, a household in Miami can expect to pay 81.69% of its total income in housing costs.
3. Los Angeles, CA
Average housing prices fell from $915,000 last month to $900,000 this month, but Los Angeles remains in the third spot for the most unaffordable housing markets in the country. A household in this city can expect to pay 79.85% of its income toward mortgage expenses and taxes.
4. Newark, NJ
Newark retains the fourth position for another month. The percentage of income toward housing costs increased 5.71% as compared to last month, with homeowners having to pay 76.07% of their income towards owning a home.
5. San Francisco, CA
San Francisco, CA moved back into the Top 5 Least Affordable Housing Markets this month. The percentage of income as a share of homeownership is lower than the other Top 5 Cities, at 65.56%, but the average median home price is the highest, at $1,350,000.
The 5 Most Affordable Housing Markets
1. Wichita, KS
Wichita remains the most affordable city in the United States according to our data, despite a rise in the share of income to homeownership as compared to October 2021. A family in Wichita can expect to spend 18.17% of its income on homeownership, making it a very affordable place to settle down.
2. Detroit, MI
The median home price in Detroit rose again this month to $83,000, but it still retains the second spot on the list. This means a household can expect to pay 18.26% of their income towards owning a home.
3. Fort Wayne, IN
Fort Wayne is seeing housing prices and the share of income in relation to homeownership go down. The median list price decreased from $164,950 last month to $159,900 this month. Buyers looking to own a home in Fort Wayne should expect to pay $771.94 per month for housing expenses.
4. Chesapeake, VA
Chesapeake, VA moves up two spots on our list from last month. The median list price fell to $319,250 and the amount a family spends on homeownership per month is also down slightly, at $1,547.11.
5. Virginia Beach, VA
Virginia Beach falls one spot from last month. The median list price increased from $315,000 to $320,000 in November. Prospective buyers will have to spend 23.78% of their annual income on housing, or $1518.14 per month.
Notable Changes November 2021
Fort Worth, TX
Fort Worth became more affordable this month, moving four spots. With homes only lasting about 21 days on the market before selling, this is a hot market. The average list price for a home is $300,000.
Baltimore jumped seven spots this month to become more affordable. Housing prices fell to $205,000 and prospective homeowners now need to spend 26.07% of their income on owning a home, a 6.78% drop from last month.
The RealtyHop Housing Affordability Index analyzes both proprietary and ACS Census data to provide an index of housing affordability and homeownership burden across the 100 most populous cities in the country. Median home prices are calculated using over 300,000 listings in the RealtyHop database over the month prior to publication.
To calculate the index, the following statistics are used:
1) Median household income from the U.S. Census
2) Median for-sale home listing prices via RealtyHop data
3) Local property taxes via ACS Census data
See below for previous RealtyHop Housing Affordability Studies:
- RealtyHop Housing Affordability Index: October 2021
- RealtyHop Housing Affordability Index: September 2021
- RealtyHop Housing Affordability Index: August 2021