The median home list price began climbing in 86 of the 100 housing markets in the United States, but prices have exceeded $700,000 in five cities, according to a report.
RealtyHop's Housing Affordability Index, published monthly, analyzed national data across the 100 most populous cities in the US. To create the index, RealtyHop analyzed the projected median household income, median for-sale home listing prices, local property taxes, and mortgage expenses.
RealtyHop's analysis found that in 88 housing markets, buyers would have to spend over 30% of their annual income on homeownership. In 25 of the most unaffordable housing markets in the country, spending goes up to 49% of a buyer's annual income.
Cities Where Homes Are Least Affordable
California remains the most unaffordable state for the average American. Three of the five cities with the least affordable homes are in the state. One city in Florida and another in New York also made the list.
Here are the five most unaffordable housing markets in the US.
- Los Angeles, CA
- Median Household Income: $78,671
- Average Home List Price: $1,100,000
- Estimated Monthly Mortgage (Including Taxes): $6,512.26
Los Angeles remains the least affordable housing market in the country. The median list price of homes in Los Angeles is $1,100,000. With the average family earning $78,671, a hopeful homebuyer would need to spend 99.33% of their income for homeownership.
- Miami, FL
- Median Household Income: $56,605
- Average Home List Price: $710,000
- Estimated Monthly Mortgage (Including Taxes): $4,378.55
Miami follows Los Angeles as the second least affordable housing market. The median list price for a home is $710,000. With the average household income, buyers would spend 92.82% of their annual salaries on housing costs.
- Irvine, CA
- Median Household Income: $126,861
- Average Home List Price: $1,475,000
- Estimated Monthly Mortgage (Including Taxes): $8,981.93
Irvine held its spot in the rankings as the third least affordable housing market in the country. Homeowners earning the median wage would be required to spend 84.96% of their monthly income on housing costs.
- New York, NY
- Median Household Income: $79,045
- Average Home List Price: $850,000
- Estimated Monthly Mortgage (Including Taxes): $5,047.63
New York City is the fourth most cost-burdened housing market in the US, with buyers having to spend 76.63% of their income on a home with a median list price of $850,000.
- Long Beach, CA
- Median Household Income: $81,509
- Average Home List Price: $799,900
- Estimated Monthly Mortgage (Including Taxes): $4,770.59
Long Beach comes fifth on RealtyHop's index. Buyers earning a median income of $81,509 hoping to purchase a home worth $799,900 would need to spend 70.23% of their income on housing costs, including mortgage payments and taxes.
