Cities Where The Majority of Americans Can’t Afford a Home

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.

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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

Real Estate Chart

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.

Contact

Kim Dahlgren, Media Relations
GOBankingRates.com
kimd@consumertrack.com
(310) 297-9233 x138

Where Millennials Can and Can’t Actually Afford to Buy Homes

With rising housing costs and crippling student loan debt, where can millennials actually afford to buy?

Los Angeles, CA – Nov. 14, 2017 (PRNewswire) Colorado and Oregon are two of the least affordable states for millennials to buy a home, a new study found.

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Unsurprisingly, these states also rank as two of the most popular to move to for the age group.

Personal finance website GOBankingRates considered the median list prices for homes across all 50 states. Based on the median millennial income of $60,932 and a 20 percent monthly savings rate, GOBankingRates calculated the amount of time it would take a millennial to afford a 20 percent down payment, as well as the estimated monthly mortgage payment.

Real Estate Infographic

For full study results and more details on methodology, visit: Where Millennials Can and Can’t Actually Afford to Buy Homes.

Best States for Millennials to Buy a Home

1. West Virginia

  • Median list price: $150,000
  • Estimated time to save for a down payment: 2.5 years
  • Monthly mortgage payment: $693

2. Ohio

  • Median list price: $154,900
  • Estimated time to save for a down payment: 2.5 years
  • Monthly mortgage payment: $704

3. Arkansas

  • Median list price: $164,900
  • Estimated time to save for a down payment: 2.7 years
  • Monthly mortgage payment: $757

4. Indiana

  • Median list price: $167,000
  • Estimated time to save for a down payment: 2.7 years
  • Monthly mortgage payment: $757

5. Iowa

  • Median list price: $169,000
  • Estimated time to save for a down payment: 2.8 years
  • Monthly mortgage payment: $766

Worst States for Millennials to Buy a Home

1. Hawaii

  • Median list price: $599,000
  • Estimated time to save for a down payment: 9.8 years
  • Monthly mortgage payment: $2,584

2. California

  • Median list price: $499,950
  • Estimated time to save for a down payment: 8.2 years
  • Monthly mortgage payment: $2,168

3. Massachusetts

  • Median list price: $419,900
  • Estimated time to save for a down payment: 6.9 years
  • Monthly mortgage payment: $1,833

4. Colorado

  • Median list price: $408,068
  • Estimated time to save for a down payment: 6.7 years
  • Monthly mortgage payment: $1,780

5. Oregon

  • Median list price: $352,000
  • Estimated time to save for a down payment: 5.8 years
  • Monthly mortgage payment: $1,551

Additional Study Insights

  • According to the U.S. Census Bureau, Texas, Washington and Colorado are the top three states where millennials are moving, though none top the list of places to buy.
  • The three cities losing the most millennials are New York, San Diego and Miami.
  • The Bay Area continues to be a hot spot for millennials, with San Francisco and Oakland both in the top 10 cities millennials are moving, despite the high cost of housing.

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.

Contact

Kim Dahlgren, Media Relations
GOBankingRates.com
kimd@consumertrack.com
(310) 297-9233 x138