Summary
Bankrate's analysis shows that more than 75% of homes for sale in the U.S. are too expensive for the average homebuyer. While some areas like Miami, Los Angeles, and San Diego have very few affordable homes, others in the Rust Belt and South offer more options. New construction can help improve affordability, but it varies by region.
Key Facts
- Over 75% of U.S. homes on the market are not affordable to typical households.
- High home prices and mortgage rates contribute to the issue, along with a shortage of homes.
- Only 11 out of the 34 largest U.S. metropolitan areas have at least 30% of listings affordable for middle-income households.
- In cities like Miami, Los Angeles, and San Diego, less than 2% of homes are affordable to the average household.
- Cities such as Pittsburgh and St. Louis have about half of homes affordable to local incomes.
- The median U.S. household earns about $80,000 annually, which is $33,000 less than what is needed to afford a median-priced home of $435,000.
- Regional affordability differences often depend on new home construction, with the South and West doing better than the Northeast and Midwest.
- Townhomes are becoming more popular as they are seen as a more affordable option for new buyers, making up 18% of single-family homebuilding recently.
