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In this August 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 Low inventory and high-interest rates continue to make homeownership unaffordable for potential buyers. Despite these tough market conditions, many buyers are still looking for property, keeping demand high. Those who have put off buying in recent years also continue to face unattractive options.<\/span><\/p>\n Miami<\/span><\/a> is again the least affordable housing market this August. The median list price for a home increased to $605,000, where homeowners can expect to spend $3,250 monthly on mortgage and property tax payments. Low inventory and high demand across multiple generations have kept housing prices high<\/a> for Miami residents. <\/span><\/p>\n Los Angeles<\/span><\/a> remains the second most unaffordable housing market nationwide. The median household income of $73,560 means that the average family would need to spend 77.29% of their annual income on mortgage and tax payments in order to own a home. LA also remains stifled by low inventory; experts argue<\/a> that removing single-family zoning could help increase housing opportunities.<\/span><\/p>\n Newark<\/span><\/a> Newark continues to be the third most cost-burdened housing market. The median purchase price for a home increased to $399,500 in August, meaning residents will now need to direct 74.06% of their income toward homeownership costs. <\/span><\/p>\n Newark officials are working to build more housing opportunities and lower costs for residents. The City council recently approved new tax abatements<\/a> for three large residential buildings that will span 40 floors.<\/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 from $815,000 to $789,999 this month. Prospective buyers will now need to spend $4,031 monthly, on average, to own a home.<\/span><\/p>\n Hialeah<\/span><\/a> rounds out our list as the fifth most unaffordable housing market. The city\u2019s homeownership index remained the same this month, with homeowners needing to spend 66.10% of their income to afford a median-priced home worth $460,000. <\/span><\/p>\n Detroit<\/span><\/a> remains the most affordable housing market this month. The median purchase price for a home slightly increased to $80,000, meaning that the average family would need to spend just $474.11 monthly in order to own a home.<\/span><\/p>\n Wichita<\/span><\/a> is the second most affordable housing market nationwide. Homeowners with a median income of $63,360 can expect to direct only 19.70% toward homeownership costs. <\/span><\/p>\n The median purchase price for a home increased this month, as Wichita has seen low inventory come to market. Experts predict<\/a> home prices will continue to rise due to a competitive market with active buyers.<\/p>\n St. Louis<\/span><\/a> jumped one spot in our rankings to become the third most affordable housing market. Home prices slightly decreased to $180,000, meaning a family generating the average income would only need to spend $972 per month on mortgage payments and property taxes. <\/span><\/p>\n Cleveland<\/span><\/a> dropped one spot to become the fourth most affordable market this August. An average family making $37,306 would only need to spend 22.11% of their income on mortgage and tax costs in order to own a home.<\/span><\/p>\n Foreclosures are down 4%<\/a> from last month in Cleveland, pointing to a rebounding housing market that could further improve conditions for buyers.<\/p>\n Oklahoma City<\/span><\/a> broke into our five most affordable cities this month. Given the median home asking price of $237,900, homeowners only need to spend 23.37% of their income on housing costs.<\/span><\/p>\n The following housing markets witnessed significant changes this month.<\/p>\n Richmond<\/span><\/a> jumped eight spots this month, becoming the 48th least affordable housing market. The median home price increased to $360,000, with homeowners needing to spend 37.03% of their income on housing; that\u2019s 2.89% more than last month.<\/p>\n Durham<\/span><\/a> dropped seven spots in the rankings and became more affordable for homebuyers this August. Homeowners with a median household income of $50,840 should expect to spend $1,152.03 monthly toward mortgage payments and property taxes.<\/p>\nKey Findings<\/b><\/h2>\n
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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. St. Louis, MO<\/span><\/h3>\n
4. Cleveland, OH<\/span><\/h3>\n
5. Fort Wayne, IN<\/span><\/h3>\n
Housing Markets to Watch<\/b><\/h2>\n
Richmond, VA<\/h3>\n
Durham, NC<\/h3>\n