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Wednesday, December 07, 2022

The 5 Most Affordable Housing Markets in America for September

In the September edition of RealtyHop’s Home Affordability Index, the real estate company examined the proportion of income that American households would spend on homeownership costs, and Wichita, Kansas was found to be the most accessible this month.

Realtyhop Home Affordability Index Analyzes property and census data from surveys conducted by the US Census Bureau (ACS) to provide an index of housing affordability and the burden of home ownership in the country’s 100 most populous cities. Median home prices are calculated using over 300,000 listings in the RealtyHop database for the month prior to publication.

To calculate the index, the following statistics are used: Estimated average family income; Average listing prices of homes for sale via RealtyHop data; Local property taxes via ACS census data; and mortgage expenses, assuming a 30-year mortgage, a 5.5% interest rate and a 20% down payment.

The 5 Most Affordable Housing Markets According to RealtyHop

1. Wichita, Kansas

Wichita replaced Fort Wayne and became the nation’s most affordable city in September, The average value of residential homes for sale fell from $160,000 in August to $152,500 this month. With a 30-year fixed-rate mortgage of 5.5%, a local Wichita family would need to set aside 17.2% of their annual income to buy a home.

2. Fort Wayne, Indiana

Fort Wayne slipped one spot and became the second most affordable US real estate market. The median listing price for the second month rose to $165,000 from $160,000 this September. it means that A typical household in Fort Wayne would need to spend 18.3% of their annual income on homeownership costs,

3. Detroit, Michigan

Detroit ranks third in the most affordable US real estate market. The average selling price this September holds steady at $89,999. The Average Detroit Families Looking for a Home Should Wait Allocate 19.03% of your annual income towards mortgage payments and property taxes, The landlord’s burden remains unchanged from the previous month.

4. Lubbock, Texas

Lubbock remains the fourth most affordable US city this September. Home values ​​rose slightly to an average of $175,000. Based on a 5.5% mortgage interest rate on a 30-year fixed-rate loan, potential buyers at Lubbock should be prepared to spend $1058 per month on mortgage payments and taxes. This is 22% of the median household income.

5. Cleveland, Ohio

Cleveland closed out the index this month as the nation’s fifth most affordable housing market. The median home value rose to $115,000 this September. An average Cleveland household can expect to allocate 22.96% of their annual income to property costs., Home ownership burden is 2.22% higher as compared to August.

According to RealtyHop, 63% of the cities in the index experienced price drops, including Miami, Los Angeles, New York, Boston, Austin and Sacramento, which Indicates the start of a housing recession with a drop in sales and housing opening.

With an extremely hot housing market, interest rates in excess of 5% and the highest inflation since 1981, buyers are struggling to find homes within their budget., As more and more potential buyers stop buying, sellers are being forced to lower their expectations and adjust to a market that is finally cooling off after two record years.

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