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During the month of December, 57% of cities across the country they became more affordable for homebuyers, according to RealtyHop’s Home Affordability Index for the month of December.
On the contrary, the report states that 33% became less affordable and 10% remained unchanged.
Considering a 30-year fixed-rate mortgage with an interest rate of 5.5%, the median listing price, and median household income, homeowners in 75 cities across the country spent more than 30% of their income in the cost of owning a home.
As interest rates continue to rise and home confidence wane, many potential buyers continue to wonder if they can ever buy a house.
This is the list of the 5 most affordable markets and the 5 least affordable, according to the study that examined the 100 most populous cities in the US
The five least affordable markets
1.- Miami, Florida
Household income: $44,581
Median Home Price: $598,000
Estimated mortgage + monthly taxes: $3,182.74 dollars
Share of income for home ownership: 85.67%
2.- Los Angeles, California
Household income: $69,695
Median Home Price: $949,000
Estimated mortgage + monthly taxes: $4,824.26 dollars
Share of income for home ownership: 83.06%
3.- New York, New York
Household income: $68,129
Median Home Price: $885,750
Estimated mortgage + monthly taxes: $4,483.66 dollars
Share of income for home ownership: 78.97%
4.- Newark, New Jersey
Household income: $38,854
Median Home Price: $372,500
Estimated mortgage + monthly taxes: $2,428.38 dollars
Share of income for home ownership: 75.00%
5.- Hialeah, Florida
Household income: $40,036
Median Home Price: $459,900
Estimated mortgage + monthly taxes: $2,394.12 dollars
Share of income for home ownership: 71.76%
The five most affordable markets
1.- Wichita, Kansas
Household income: $59,861
Median Home Price: $145,000
Estimated mortgage + monthly taxes: $816.03 dollars
Share of income for home ownership: 16.36%
2.- Fort Wayne, Indiana
Household income: $57,533 dollars
Median Home Price: $165,000
Estimated mortgage + monthly taxes: $877.22 dollars
Share of income for home ownership: 18.30%
3.- Detroit, Michigan
Household income: $34,932
Median Home Price: $90,000
Estimated mortgage + monthly taxes: $553.86 dollars
Share of income for home ownership: 19.03%
4.- Cleveland, Ohio
Household income: $35,305 dollars
Median Home Price: $115,000
Estimated mortgage + monthly taxes: $675.60 dollars
Share of income for home ownership: 22.96%
5.- Lubbock, Texas
Household income: $57,685
Median Home Price: $185,000
Estimated mortgage + monthly taxes: $1,117.98 dollars
Share of income for home ownership: 23.26%
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