Homeownership Affordability In Urban America

Beginning in 2004, first time homebuyers in the US earning the medianfamiliy income will not be able to qualify for the median priced US homewith 10% down.

1 minute read

August 31, 2004, 1:00 PM PDT

By Chris Steins @planetizen

This study examines past and projected trends in home affordability formedian-income working Americans, presenting data for both the nation andfor 11 selected metropolitan areas, including Los Angeles. The reportclosely examines affordability for schoolteachers, nurses, firefighters,and police officers.

Among the conclusions:

Atlanta, Houston and Philadelphia will remain affordable while Boston,Los Angeles, New York and San Francisco will become increasinglyunaffordable.

By 2007, the median priced home in Los Angeles will be unaffordablefor repeat two-income homebuyers, even with a 20% down payment.

At the metropolitan-area level, median-priced homes will remain affordable or nearlyaffordable for median-income buyers in only three of 11 selected urban markets (Atlanta,Houston, and Philadelphia). As a result of faster growth in home prices than in familyincomes, four other urban markets (Chicago, Denver, Seattle, and Washington, D.C.) areshifting from barely or nearly affordable to unaffordable for median-income residents.The median-income worker is already shut out of four metropolitan markets (Boston, LosAngeles, New York, and San Francisco).

[Editor's note: The link below is to a 1 MB PDF.]

Thanks to Paul Tepper

Read the full story: Homeownership Affordability in Urban America

Tuesday, August 31, 2004 in KnowledgePlex

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