These cities’ housing markets are less affordable than SF’s
The Bay Area’s housing market is not known for its affordability. But as home prices continue to drop here, more and more cities are giving San Francisco’s pricey reputation a run for its money in the real estate department.
According to RealtyHop’s latest housing affordability index, six cities have housing markets more unaffordable than San Francisco’s. The index is ranked based on median household income, local property taxes, median for-sale prices and mortgage expenses.
With a median home price of $1,388,000, San Francisco is ranked as the seventh least-affordable housing market in the nation. The city’s median household income of $126,117, which is notably higher than in most places the index lists, could contribute to why it’s ranked lower than you’d expect. The average SF family would need to use 66.56% of its yearly income to afford a home.
Miami was ranked as the least-affordable housing market with a median home price of $610,000 and a median household income of $44,581. With a 5.5% interest rate on a 30-year fixed-rate mortgage, the average Miami family would need to spend 87.39% of its annual income to afford a home. Los Angeles is slightly more affordable, with a median home price just shy of $1 million at $975,000 and a median household income of $69,695. The average LA family would need to spend 85.34% of its income to afford a home.
New York City was predictably unaffordable, coming in as the third least-affordable city. With a median household income of $68,129 and a median home price of $925,000, an average family would need to spend 82.47% of its yearly income to afford a home.
Newark, New Jersey’s largest metropolis, is ranked fourth in the index, followed by Hialeah, Florida, which borders Miami.
Sixth on the index is my hometown of Long Beach, which doesn’t surprise me, considering most of the people I grew up with can’t afford to live there anymore. The median home price in the LBC is $799,000 and the median household income is $70,677, meaning the average family there needs 69.77% of its yearly income to afford a home.
After San Francisco at No. 7, the eighth, ninth and 10th spots on the index are all in Southern California — San Diego, Anaheim and Santa Ana, respectively. Oakland ranks right after them at No. 11, with a median home price of $798,000 and a median household income of $82,649.
