![\"\"](\"https:\/\/www.realtyhop.com\/blog\/wp-content\/uploads\/2023\/07\/realtyhop-housing-affordability-index-july-2023-feature-image.png\")
<\/p>\n<\/p>\n
In this July edition of the RealtyHop Housing Affordability Index, we examine what American households across the 100 largest cities need to spend on housing to find out:<\/span><\/p>\n Is homeownership affordable or possible for the average American family?<\/span><\/i><\/p><\/blockquote>\n With interest rates above 7% and high housing prices, many potential buyers are holding off purchasing properties. Low inventory still affects most markets nationwide, where those looking to buy property have fewer options and continue to face competition. All of these factors combined continue to make homeownership unaffordable for most would-be buyers. <\/span><\/p>\n Miami<\/span><\/a> is the least affordable housing market this July. Despite higher interest rates, real estate values in the city continue to climb<\/a>. The median list price for a home increased to $599,000, where homeowners can expect to spend $3,218 monthly on mortgage and property tax payments. <\/span><\/p>\n Los Angeles<\/span><\/a> remains the second most unaffordable housing market in the nation. The median purchase price for a home is now $930,000, and households should expect to spend 77.37% of their monthly income on the cost of homeownership.<\/span><\/p>\n Newark<\/span><\/a> is the third least affordable city in July. Households generating a median income of $41,045 can expect to spend 72.28% of their annual income on mortgage payments and property taxes.<\/span><\/p>\n While home prices are still high in Newark, prospective homebuyers are purchasing homes at a higher rate<\/a> than in other cities. Proximity to New York City remains a major driver for housing demand as commuters purchase homes in this area to avoid even higher costs in areas like Manhattan and Brooklyn.<\/p>\n New York City<\/span><\/a> remains the fourth least affordable housing market in the country. The median purchase price for a home decreased slightly to $815,000 this month. Prospective buyers need to spend $4,158 monthly to own a home.<\/span><\/p>\n Hialeah<\/span><\/a> is still the fifth most unaffordable housing market. The average family in Hialeah spends 66.10% of their annual household income to afford a median-priced home worth $460,000. <\/span><\/p>\n Detroit<\/span><\/a> remains the most affordable housing market in July. The median purchase price for a home slightly decreased to $79,000, and an average family can expect to spend just 15.32% of their income on mortgage payments and property taxes.<\/span><\/p>\n Wichita<\/span><\/a> is the second most affordable housing market nationwide. The city became even more affordable this month, where homeowners only need to spend 18.95% of their monthly income, or $1,000, on housing costs.<\/span><\/p>\n The Cleveland<\/a><\/span> housing market again ranks as the third most affordable nationwide. The median purchase price slightly increased to $114,500 this month.<\/span><\/p>\n Cleveland\u2019s lower housing costs continue to appeal to younger first-time homebuyers, where the population of 27 to 42-year-olds increased by 6%<\/a> over the past three years. Buyers are moving to the area and spending money where they can afford property, increasing sales in the city.<\/p>\n St. Louis<\/span><\/a> remained the fourth affordable housing market in July. Home prices slightly increased to $185,000, and a family generating a median income will spend 22.48% of it on mortgage payments and property taxes. <\/span><\/p>\n Fort Wayne<\/span><\/a> is the country’s fifth most affordable city. Homeowners with a median household income of $59,960 spend 23.09%, or $1,151 monthly, on homeownership.<\/span><\/p>\n The following housing markets witnessed significant changes this month.<\/p>\n Laredo<\/span><\/a> jumped eight spots in the rankings this month, becoming the 63rd least affordable housing market nationwide. The median purchase price increased to $249,900, and homeowners can expect to spend 31.27% of their income on housing; that\u2019s 2.45% more than last month.<\/p>\n Glendale<\/span><\/a> became more affordable for buyers this month and dropped seven spots in the rankings. Homeowners in the city will now only need to direct 36.05% of their income, or $2,019 monthly, toward homeownership costs.<\/p>\n Buyers with various budgets can find options in Glendale, as the city offers a robust luxury market and many options for those making the median income. In this city, homes sell in an average of 36 days<\/a>, making it an appealing option for local buyers.<\/p>\nKey Findings<\/b><\/h2>\n
\n
The 5 Least Affordable Housing Markets<\/b><\/h2>\n
1. Miami, FL<\/span><\/h3>\n
2. Los Angeles, CA<\/span><\/h3>\n
3. Newark, NJ<\/span><\/h3>\n
4. New York, NY<\/span><\/h3>\n
5. Hialeah, FL<\/span><\/h3>\n
The 5 Most Affordable Housing Markets<\/b><\/h2>\n
1. Detroit, MI <\/span><\/h3>\n
2. Wichita, KS<\/span><\/h3>\n
3. Cleveland, OH<\/span><\/h3>\n
4. St. Louis, MO<\/span><\/h3>\n
5. Fort Wayne, IN<\/span><\/h3>\n
Housing Markets to Watch<\/b><\/h2>\n
Laredo, TX<\/h3>\n
Glendale, AZ<\/h3>\n
Atlanta, GA<\/h3>\n