{"id":565497,"date":"2023-03-17T23:16:48","date_gmt":"2023-03-17T20:16:48","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/only-two-large-us-cities-are-affordable-for-new-home-buyers\/"},"modified":"2023-03-17T23:16:48","modified_gmt":"2023-03-17T20:16:48","slug":"only-two-large-us-cities-are-affordable-for-new-home-buyers","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/only-two-large-us-cities-are-affordable-for-new-home-buyers\/","title":{"rendered":"#Only two large US cities are affordable for new home buyers"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a25817996d45\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a25817996d45\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/only-two-large-us-cities-are-affordable-for-new-home-buyers\/#Only_two_large_US_cities_are_affordable_for_new_home_buyers\" >Only two large US cities are affordable for new home buyers<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Only_two_large_US_cities_are_affordable_for_new_home_buyers\"><\/span>Only two large US cities are affordable for new home buyers<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/GettyImages-1417425688-e1679084185279.jpg?w=900\" \/><\/p>\n<div>\n<p>Only two of the 50 largest U.S. cities are affordable for first-time home buyers, according to a new analysis that weighs average list prices against local incomes.\u00a0<\/p>\n<p>The report on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/mortgages\/fthb-affordability-q42022\">first-time home buyer affordability<\/a>, released this month by the personal finance site NerdWallet, invokes an old rule of thumb: First-time buyers should budget to purchase a home priced at no more than three times their household income.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>That rule may seem unrealistic. But two cities, Pittsburgh and Cleveland, have enough affordable housing that average list prices total less than three times the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>n household incomes for younger adults in those cities.\u00a0\u00a0<\/p>\n<p>In the fourth quarter of 2022, the average Pittsburgh home listed for $214,011, which is 2.6 times the area\u2019s median household income for younger buyers, $82,170. The income figure covers adults ages 25 to 44, the typical age range for first-time home buyers.\u00a0<\/p>\n<p>The average Cleveland home listed for $199,410, which is 2.9 times that city\u2019s median household income for new buyers, $68,897.\u00a0<\/p>\n<p>Home prices have been ticking down, and the inventory of homes for sale has been rising. That\u2019s good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> for buyers, who find themselves with much more leverage now than a year or two ago.\u00a0\u00a0<\/p>\n<p>The bad news? Mortgage rates are sky-high, at least by comparison to the low-interest bonanza of the last several years. The average rate for a fixed, 30-year mortgage hovers <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\">between 6 and 7 percent<\/a>. At the start of 2022, rates stood near 3 percent.\u00a0<\/p>\n<p>The median sale price for an American home <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fred.stlouisfed.org\/series\/MSPUS\">rose by more than two-fifths<\/a> between 2020 and 2022, peaking around $468,000.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>NerdWallet launched its affordability analysis in 2020. Up to now, none of the largest cities rated as \u201caffordable,\u201d when comparing sale prices to incomes.\u00a0\u00a0<\/p>\n<p>\u201cIn most locations, looking only at homes with prices three times your income right now is unrealistic,\u201d wrote Elizabeth Renter, senior writer and data analyst at NerdWallet. \u201cYour search results would be nearly empty.\u201d\u00a0<\/p>\n<p>The latest analysis finds Los Angeles the least affordable large city, with the average home priced at $919,230, more than 10 times the city\u2019s median household income among younger buyers, $88,020.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>The average home in New York \u2014 the whole city, not Manhattan alone \u2014 cost $664,386, seven times the buyers\u2019 income of $94,423.\u00a0\u00a0<\/p>\n<p>Chicago homes listed at an average $329,491, four times the buyers\u2019 income, $83,408.\u00a0<\/p>\n<p>If you use an affordability multiplier of four rather than three, budgeting for homes that cost up to four times a first-time buyer\u2019s income, then several cities start to look marginally affordable.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>The average Philadelphia home cost $327,524, less than four times the buyers\u2019 income of $85,443. Baltimore homes listed at an average $335,641, which is 3.6 times the buyers\u2019 income, $92,514.\u00a0<\/p>\n<p>Nationwide, homes were listed at 5.4 times the median income for younger adults in the fourth quarter of 2022. The least affordable cities include San Diego, Miami, San Francisco and Las Vegas. More affordable: Buffalo, N.Y., Detroit, St. Louis and Indianapolis.\u00a0<\/p>\n<p>\u201cOur national average shows us that it\u2019s pretty realistic for potential first-time home buyers to be able to find a house for roughly five times their income,\u201d Renter said in an e-mail interview. \u201cBut California buyers would balk at that number; after all, the state is home to some of the least affordable markets.\u201d\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>List prices fell 5 percent nationwide and 3 percent in large cities in the last quarter of 2022, after adjusting for inflation. Only eight large cities saw home prices increase, and the gains were small.\u00a0\u00a0<\/p>\n<p>When the report compares home prices in late 2022 to the market of a year earlier, the results range all over the map, illustrating how much one local real estate market can vary from another. Between the fourth quarter of 2021 and the same time in 2022, average home prices fell by 11 percent in New Orleans, by 9 percent in Austin, Texas, by 8 percent in Denver and by 6 percent in Houston. But prices rose sharply in Milwaukee, Memphis and Miami.\u00a0<\/p>\n<p>During the same time period, the number of homes listed for sale nationwide rose by 44 percent. In large cities, listings rose by 63 percent in that span. Large inventories of unsold homes work to the favor of potential buyers.\u00a0\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>As home sales data trickles in for 2023, \u201cwe\u2019ll likely see prices lower than they were in 2022,\u201d Renter said. Mortgage rates, on the other hand, \u201care likely to stay high.\u201d\u00a0<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/business\/housing\/3905717-only-two-large-us-cities-are-affordable-for-new-home-buyers\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Only two large US cities are affordable for new home buyers Only two of the 50 largest U.S. cities are affordable for first-time home buyers, according to a new analysis that weighs average list prices against local incomes.\u00a0 The report on first-time home buyer affordability, released this month by the personal finance site NerdWallet, invokes&#8230;<\/p>\n","protected":false},"author":1,"featured_media":565498,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/GettyImages-1417425688-e1679084185279.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134417,117,134353,10574,124783,134614,134345],"class_list":["post-565497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-blog-briefing-room","tag-business","tag-court-battles","tag-education","tag-international","tag-judiciary","tag-state-watch"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/565497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=565497"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/565497\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/565498"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=565497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=565497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=565497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}