But other expenses may weigh on the majority of middle-class households
Middle-class homebuyers can afford a median-priced home in most metros, according to LendingTree’s recent study on homeownership for the middle class.
On average, a middle-class family can afford nearly $450 more a month than what would be needed to pay for a median-priced home in their area, LendingTree reported. An upper-middle-class family, on the other hand, could spare over $1,900 to pay for a median-value home.
However, not all lower-middle class families could afford to pay for a home priced at the median home value in their area. Only 34 metros are affordable for members of the lower-middle class, according to LendingTree.
The most affordable metros for lower-middle-class families are Houston, Pittsburgh, and Buffalo, N.Y. Families in those areas could afford to pay nearly $300 more than the median mortgage payment.
Metros in California are mostly hard to reach for the majority of the middle class.
“The lower- and middle-middle classes face the most difficulty affording a home in Los Angeles, San Francisco, and San Jose, Calif.,” LendingTree wrote. “For the upper-middle class, the least affordable metros are Los Angeles, San Diego, and San Jose, Calif. However, families in the upper-middle class still make more than enough money to comfortably pay for a home in any of the nation’s 50 largest metros.”
The findings of LendingTree’s study suggested that while median-priced homes are affordable to the majority of middle-class families, they may also have other expenses that can shave off their home budgets, such as student loan debt and childcare costs. In addition, the standard 20% down payment is not feasible for everyone.
“As a result, some families may need to spend more me than others in saving up for a down payment, or strengthening their credit score in order to get a more favorable interest rate,” LendingTree wrote. “Beyond that, some families may want to consider alternative options to help them pay for a home, from budgeting to spend more than 28% of their income on housing costs, or considering applying for special government programs like FHA loans that can help lower housing cost burdens.”
