New data indicates that housing prices are rising unequally across the United States, with the least affordable markets rising faster than more affordable ones. The growing gap could have implications for demographic trends and housing policies.
Jed Kolko parses the latest data from the Trulia Price Monitor and Trulia Rent Monitor and finds home prices rising at a faster pace in America's least affordable cities. "Among the 10 least affordable metros, the average [Year-over-Year] asking price gain was 16.3%," he notes. "In contrast, among the 10 most affordable metros, prices rose 9.5% on average – same as the national price increase, but well behind the average price gain for the 10 least affordable metros."
"That means that homeownership affordability is becoming more unequal across the U.S. – the gap between more affordable and less affordable markets is growing," Kolko explains. "This growing gap means two things for the housing market:
- First, as local markets become more unequal, more people will consider moving from less affordable to more affordable areas.
- Second, a widening affordability gap puts pressure on housing policy. It’s harder to come up with one-size-fits-all national housing policies when local markets are becoming more different from each other.
Read the full story: Rising Prices Make Homeownership Affordability More Unequal Across the U.S.
Report: Just 7 Percent of Homes for Sale Affordable to Black Households
The affordability crisis continues to impact American households across the board, with 16 percent of listings affordable to the average household.
What If We Stopped Considering Housing an Investment?
If Americans viewed housing as what it essentially is, a consumable good, solutions to our ongoing affordability crisis might just present themselves. And we'd probably loosen a lot of land use regulations.
New Data on the Shift to Cities
It's no secret that urban centers are doing better today than they were 30 years ago. New FHFA data on housing prices confirms the trend and suggests that a changing environment (as opposed to changing preferences) account for it.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
California plans to bury El Niño’s downpour
If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.
Desperate measures: Advocates weigh draining Lake Powell to fill Colorado River
Draining the reservoir could reduce evaporation losses by a couple hundred thousand acre-feet.
Housing is the top priority of Seattle’s sole new councilmember
Jenks campaigned on building 1,000 new units of affordable housing.
New tax cuts may slash $1.5 billion in funding for Miami transit, public parks
Amendment 3 will save Miami-Dade homeowners $2,700 in 2028.
Arizona, Wisconsin, Pennsylvania hope to finally advance climate goals post-midterms
The three states have spent years under Republican or divided control.
FREE Course: Walkable City 1: Why Walkability?
After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.
Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold
The course focuses on the opportunities and imperatives that shape reinvention of mall sites.
City of Rosemead
Rutgers University, Edward J. Bloustein School of Planning and Public Policy
One Hundred Miles
University of Michigan School for Environment and Sustainability (SEAS)
Hunter College, City University of New York (CUNY)
The Architects Foundation
City of Cambridge
Montrose County
The Pocatello Development Authority