There’s a startling affordability gap between cities and neighborhoods – report

A new study on home affordability shows a wide divergence in affordability among US cities for buyers with a 10% down payment

There’s a startling affordability gap between cities and neighborhoods – report
A new study on home affordability shows a wide divergence in affordability among US cities for buyers with a 10% down payment.

San Francisco remains the country’s least affordable city for first-time homebuyers according to the report, authored by homeownership investment company Unison.

With the median household income in the city of $92,501 for 25-44 year olds (the age group of the majority of first-time homebuyers) and the maximum monthly mortgage amount of $3,469 for that earning power, this group can only afford a dismal 1.4% of homes in San Francisco.

Coastal cities still pose limited alternatives, but areas such as Los Angeles, New York and Boston still offer a bigger percentage of homes that first-time homebuyers, as 16% to 52% of homes are within their reach in these areas.

The Midwest is a much more affordable area, as at least 78% of homes in cities such as Chicago, with a median household income of $66,084 and a maximum monthly mortgage payment of $2,478, are within their reach.

Here are some cities and their home affordability with a 10% and 20% down payment:

10% down payment:

City

Total Homes

Median Income

Maximum Monthly Payment

Maximum Home Price with 10% Down

# of Homes Affordable with 10% Down

% of Homes Affordable with 10% Down

SAN FRANCISCO

183,336

$92,501

$3,469

$557,751

2,537

1%

LOS ANGELES

2,107,188

$62,312

$2,337

$375,721

335,178

16%

NEW YORK

905,940

$74,397

$2,790

$448,590

170,470

19%

BOSTON

179,544

$84,955

$3,186

$512,251

65,850

37%

SEATTLE

261,451

$75,822

$2,843

$457,182

100,322

38%

PORTLAND

272,328

$64,635

$2,424

$389,728

141,377

52%

 

20% down payment:

City

Total Homes

Median Income

Maximum Monthly Payment

Maximum Home Price with 10% Down

# of Homes Affordable with 20% Down

% of Homes Affordable with 20% Down

PORTLAND

272,328

$64,635

$2,424

$466,627

183,902

68%

MIAMI

521,369

$52,040

$1,952

$375,699

386,232

74%

ATLANTA

273,378

$58,121

$2,180

$419,600

203,702

75%

DALLAS

310,734

$61,033

$2,289

$440,623

233,326

75%

NASHVILLE

142,449

$57,739

$2,165

$416,842

112,429

79%


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