4 California cities make the list of cities with the least affordable middle-class housing
(NEXSTAR) – The housing market remains hot two years after the start of the COVID-19 pandemic. Cities across the country have seen record home prices coupled with record inventory. If you’re in the market to buy, a new report says you may struggle to find a home within your budget.
According to an analysis by the National Association of Realtors and Realtors.com, high prices and low inventory, dubbed the “double trouble,” are making it extremely difficult for homebuyers right now.
The NAR found that more than 400,000 fewer affordable homes are listed for buyers earning $75,000 to $100,000 compared to the start of the pandemic. In the same income group, there is only one affordable list available for 65 households.
In 2019, there was an affordable list for 24 households in this income group, according to NAR.
As the market has fewer options, house prices continue to rise. NAR’s analysis found that total home valuation nationwide increased by approximately $8.1 trillion between the first quarter of 2020 and the end of 2021.
For middle-class households earning between $75,000 and $100,000, some cities have more affordable listings than others. Realtor.com looked at the top 100 metropolitan areas for listings by household and compared them to the number of affordable properties.
Here are the top 10:
|Region||Ads by household||Total number of affordable listings|
|Des Moines, Iowa||26||1,256|
|Baton Rouge, The.||36||873|
|Virginia Beach, Virginia.||39||2,226|
|Lakeland-Winter Haven, Florida.||43||746|
At the other end of the spectrum are, of course, the 10 areas with the fewest homes for sale per household. If you’re hoping to move to California on a budget, you may not have much luck:
|Areas||Ads by household||Total number of affordable listings|
|San Jose, California.||2,043||30|
|Salt Lake City||348||175|
While housing availability is limited for the middle class, the NAR found that higher-income households might find some of the more expensive metros, like San Jose and San Francisco, more affordable than two years ago. years.
Household incomes in San Jose and San Francisco rose 15% and 13%, respectively. Despite higher income, the latest housing report shows that higher income groups are still seeing fewer housing options than before the pandemic.
To make matters more difficult, average long-term US mortgage rates jumped last week, reaching their highest level in more than two years, reports the Associated Press. According to mortgage buyer Freddie Mac, the average rate on a 30-year mortgage jumped nearly a quarter point to 3.69% last week.
A year ago, this rate was 2.73%. The average rate for a 30-year loan has never been so high since the start of 2020.
The Associated Press contributed to this report.
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