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Cities Losing the Affordability Battle

Los Angeles, California, remained the least affordable market in the country with a median home price of just under $900,000, according to the latest statistics from RealtyHop. 

While there was a slight dip of 0.42% in RealtyHop’s affordability index, homeowners would need to use 91.5% of their income to afford a home in the city of angels. The average household income in Los Angeles is just $54,501.

Miami, Florida, held steady at No. 2, as homeowners would need to use 85.93% of their income to afford a home. New York, New York (85.3%), San Francisco, California (78.13%), and Boston, Massachusetts (65.71%) followed. 

San Francisco’s average asking price is the highest of any market studied by RealtyHop at $1.38 million. The average household income in San Francisco is $96,265, with the average mortgages being $6,267. 

Freemont, California had the highest median income at $122,191. Freemont came in at No. 16 most expensive market on the list, with an average home price of $992, 475. 

Making its debut on the list, Boston saw an increase in median home sale prices to $729,000. 

On the other side of the spectrum, Detroit, Michigan, is the most affordable market in the nation. The average home price in Detroit is just $50,000 with an average household income of $27,838. Households need to spend just 13.04% of their income to own a home. 

The average mortgage payment in Detroit is just $302.42.

Following Detroit was Fort Wayne, Indiana; Wichita, Kansas; Cleveland, Ohio; and Bakersfield, California. Bakersfield made the ranking for most affordable markets for the first time, as a drop in home-sale prices caused the affordability index to drop 7.7% since last month. 

Home prices will continue to impact affordability, as CoreLogic’s latest Home Price Index revealed home prices rose 3.6% annually in July. Just two states—South Dakota and Connecticut—reported declines in home prices. 

July's HPI gain was down annually from 2018's 5.8% gain. July's increase was also a slight increase over June's 3.3%.

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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