Jed Kolko presents the findings of a study that examines the available stock of housing available to those earning the median income around the country in different cities around the country.
According to an article by Jed Kolko, a recent study of housing prices reveals that "compared with the longer-term past, homeownership still looks relatively affordable: home prices are still undervalued and mortgage rates remain near historic lows." In fact, "[in] most U.S. markets, the majority of homes for sale are within reach of the middle class, and buying is cheaper than renting in all of the 100 largest metros." The current report follows an inaugural study from last year.
The analysis pulls data on the prices of housing from Trulia, and defines middle class differently in each metro area under examination.
The study finds specifics about the many places where houses are still affordable for the middle class: "[in] 80 of the 100 largest U.S. metros, most of the homes for sale today are within reach of the middle class. In the most affordable housing markets, more than 80 percent of homes are within reach, with Akron topping the list at 86 percent. The 10 most affordable markets include eight in (or near) the Midwest, plus the southern markets of Columbia, SC, and Little Rock, AR. Five of the top 10 are in Ohio."
The less affordable places in the country shouldn't come as a surprise: "Seven of the 10 least affordable markets are in California, along with New York, neighboring Fairfield County, CT, and Honolulu. Only 14 percent of homes for sale in San Francisco are affordable to the middle class, even though median household income is higher in San Francisco than almost anywhere else in the country."
Kelko also provides analysis on the differences between markets. One conclusion he draws from the numbers: "In all, today’s unaffordable markets are likely to stay unaffordable. A collapse in demand is nothing to wish for; geographic constraints are nearly impossible to change; and strong political forces make building regulations difficult to relax."
FULL STORY: Where Buying a Home is Within Reach of the Middle Class
Where Can America's Middle Class Afford to Live?
Though owning a home may be easier today than during the housing bubble due to lower interest rates and prices, in many cities across the U.S. the middle class is widely excluded from homeownership. Trulia crunches the numbers.
How Housing Fared in 2019
Next City's Jared Brey reviews a year of developments in housing politics and policy, teasing out several big trends.
How the Middle Class Is Faring on Housing
While the middle class does not face the same kind of nationwide affordability crisis as low-income populations, geography and demographics are placing new stress on middle-income households.
Depopulation Patterns Get Weird
A recent ranking of “declining” cities heavily features some of the most expensive cities in the country — including New York City and a half-dozen in the San Francisco Bay Area.
California Exodus: Population Drops Below 39 Million
Never mind the 40 million that demographers predicted the Golden State would reach by 2018. The state's population dipped below 39 million to 38.965 million last July, according to Census data released in March, the lowest since 2015.
Chicago to Turn High-Rise Offices into Housing
Four commercial buildings in the Chicago Loop have been approved for redevelopment into housing in a bid to revitalize the city’s downtown post-pandemic.
Google Maps Introduces New Transit, EV Features
It will now be easier to find electric car charging stations and transit options.
Ohio Lawmakers Propose Incentivizing Housing Production
A proposed bill would take a carrot approach to stimulating housing production through a grant program that would reward cities that implement pro-housing policies.
Chicago Awarded $2M Reconnecting Communities Grant
Community advocates say the city’s plan may not do enough to reverse the negative impacts of a major expressway.
City of Costa Mesa
Licking County
Barrett Planning Group LLC
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
City of Universal City TX
ULI Northwest Arkansas
Town of Zionsville
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
