March 18th, 2013
Certain housing markets are more affordable than others, and a new analysis reveals to buyers which areas offer the most reasonable price structures.
ZipRealty analyzed data comparing median home sale prices in 30 metropolitan areas to median household income levels in those same cities. The metropolitan areas with the lowest ratios of home price to household income were listed as the most affordable areas.
Dallas-Fort Worth and Houston were listed as the top two most affordable housing markets in the U.S., followed by Minneapolis. The company also listed the least affordable markets, which included Washington, D.C., Brooklyn, New York and the San Francisco Bay area.
“Purchasing a home is a major ticket item for people in any city, and yet our research clearly shows that housing affordability can differ vastly from one city to the next,” said Lanny Baker, CEO and President of ZipRealty. “It is important for consumers to understand how housing in their local market tends to be priced relative not only to local income levels, but in comparison to other areas of the nation,” he continues.”
In addition to home prices, buyers should also speak to their mortgage consultant about the interest rates they will face to better determine how large of a mortgage they can feasibly afford.