In any event, if one considers an affordability surplus of less than $10,000 to be a borderline deficit gap -- not an unreasonable margin considering all the additional costs associated with home buying -- many more large cities would slide into the unaffordable territory.
For first-time buyers, it is even tougher. "With home prices climbing ever higher, and inventory yet to see sustained increases, getting a foot in the door is incredibly difficult,” said Justin LaJoie, RealEstate.com General Manager.
There’s Always Houston
Near the other end of the spectrum is Houston, one of the largest and fastest-growing metropolitan areas in the U.S. and where the would-be buyers might find hope.
The region’s monthly mortgage payment is estimated to be an attractive $800 on a median home priced at just shy of $200,000. The transaction would leave the typical college graduates with $31,000 to spare.
St. Louis, Pittsburgh, and Buffalo also rank among the most affordable and are also areas where wages are also rising in excess of 6 percent on an annual basis.
Methodology: Research included all large U.S. metro- and micropolitan areas with at least 65,000 population with sufficient housing data from Zillow; Final result included areas where either half or more of the renter households have at least college degrees, or where one in three people age 25+ are college educated; U.S. Census data as of 2017; Median earnings by college degree holders excluded those with graduate/professional degrees as highest educational attainment, nor educated population under the age 25 with earnings; 2018 median earnings estimates based on the short-term (three prior years) regional nominal income growth pattern for the demographic group and the general 2017-2018 inflation escalation; Single family home values based on Zillow’s monthly median value for all homes including detached single family homes, condominium and co-operatives; 2018 value estimates based on January to October data; The mortgage payment calculation assumed a standard 20 percent down payment and state-based daily average of 30-year fixed rates, or jumbo rates if the home value was higher than $453,100 for 2018 and/or $424,100 for 2017; Minimum salary required was the inferred amount, assuming one-third of the pre-tax income goes to mortgage payment.
This article provided by Bloomberg News.