The Bay Area’s housing market is not known for its affordability. But as home prices continue to drop here, more and more cities are giving San Francisco’s pricey reputation a run for its money in the real estate department.
According to RealtyHop’s latest housing affordability index, six cities have housing markets more unaffordable than San Francisco’s. The index is ranked based on median household income, local property taxes, median for-sale prices and mortgage expenses.
With a median home price of $1,388,000, San Francisco is ranked as the seventh least-affordable housing market in the nation. The city’s median household income of $126,117, which is notably higher than in most places the index lists, could contribute to why it’s ranked lower than you’d expect. The average SF family would need to use 66.56% of its yearly income to afford a home.
Miami was ranked as the least-affordable housing market with a median home price of $610,000 and a median household income of $44,581. With a 5.5% interest rate on a 30-year fixed-rate mortgage, the average Miami family would need to spend 87.39% of its annual income to afford a home. Los Angeles is slightly more affordable, with a median home price just shy of $1 million at $975,000 and a median household income of $69,695. The average LA family would need to spend 85.34% of its income to afford a home.
New York City was predictably unaffordable, coming in as the third least-affordable city. With a median household income of $68,129 and a median home price of $925,000, an average family would need to spend 82.47% of its...
