In many large cities, more than 50% of households cannot afford a home
Los Angeles, CA – Jan. 2, 2018 (PRNewswire) Six cities on the U.S. coasts have a 70 percent or higher percentage of households that can’t afford a home, a new study found.
Personal finance website GOBankingRates used the median home listing price in the 100 largest cities to calculate typical monthly mortgage payments. Using the rule that no more than 30 percent of income should go toward housing, GOBankingRates calculated the income needed to afford a mortgage. Researchers then compared this income to the number of households with income equal to or greater than that amount.
For full study results and more details on methodology, visit: Places Where 50% of Americans Can’t Afford a Home
Top Five Cities With the Highest Percentage of Households That Can’t Afford a Home
1. San Francisco, CA
Median listing price: $1,199,000
Percentage of households that can’t afford a home: 76.7 percent
2. Boston, MA
Median listing price: $725,000
Percentage of households that can’t afford a home: 75.7 percent
3. Miami, FL
Median listing price: $450,000
Percentage of households that can’t afford a home: 74.3 percent
4. Long Beach, CA
Median listing price: $549,900
Percentage of households that can’t afford a home: 73.5 percent
5. Los Angeles, CA
Median listing price: $749,000
Percentage of households that can’t afford a home: 72.9 percent
Additional Study Insights
- Perhaps unsurprising due to its high real estate prices, six of the top 10 cities with the highest percentage of households that can’t afford homes are in California.
- Some surprising cities made the final list. In New Orleans, the median home price is $300,000 but 65.4 percent of households can’t afford a home because wages are lower.
- Median home prices in Oakland, Calif., are half as expensive as they are across the bay in San Francisco.
About GOBankingRates
GOBankingRates.com is a personal finance news and features website dedicated to helping visitors live a richer life. From tips on saving money, to investing for retirement or finding a good interest rate, GOBankingRates helps turn financial goals into milestones and money dreams into realities. Its content is regularly featured on top-tier media outlets, including MSN, MONEY, AOL Finance, CBS MoneyWatch, Business Insider and dozens of others. GOBankingRates specializes in connecting consumers with the financial institutions and products that best match their needs. Start your journey toward a rich mind and full wallet with us here.
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