The RealtyHop Home Affordability Index, found that in December 2022 Wichita, Kansas, leads the most affordable markets to buy a home in the US.
RealtyHop examines the proportion of income that American households would have to spend on home ownership costs, to find out how affordable or possible is it for the average American family to have access to a new home.
The real estate agency found that like last month, 57% of cities across the country became more affordable for homebuyerswhile 33% became less affordable and 10% remained unchanged.
“Homeowners in cities like Sacramento, Boise, Louisville, and Dallas can sigh with relief as home prices fall.”the report states.
Considering a 30-year fixed-rate mortgage with an interest rate of 5.5%, median list price, and median household incomelos homeowners in 75 cities across the country spend more than 30% of their income on the cost of owning a home.
As interest rates continue to rise and housing confidence wanes, many potential buyers continue to wonder if they will ever be able to buy a home.
The 5 most affordable housing markets, according to RealtyHop:
1. Wichita, Kansas
Wichita ranked as the most affordable city in the country for the fourth month in a row, as the median home sales price decreased from $149,900 to $145,000. In this entity, an average household earning $59,861 a year now only You will need to spend 16.36% of your income on home ownership costs.
2. Fort Wayne, IN
In second place was Fort Wayne, with a 2.88% drop in median home price, from $169,000 to $165,000. Here an average household has a median income of $57,533 and you need to spend 18.30% of your income to own a home.
3. Detroit, Michigan
Detroit is the third most affordable US real estate market. Of the five most affordable markets, the city experienced the most significant change in affordability, with median sales prices declining 4.76% to $90,000. In Detroit a family earning a median salary of $34,932 You only need to put 19.03% of your income toward the cost of ownership on a conventional 30-year mortgage..
4. Cleveland, Ohio
Cleveland climbed one spot to become the fourth most affordable real estate market in the United States. Median home purchase price decreased 3.36%, from $119,000 to $115,000. In this entity, residents with a median salary of $35,305 can expect put 22.96% of your income toward home ownership costsor what is the same, $675.50 per month.
5. Lubbock, Texas
In December, Lubbock slipped back to fifth most affordable in the country. Median home sales price held steady at $185,000. Therefore, a resident earning a median income of $57,685 you will expect to spend 23.26% of your income to meet your housing costs.
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