Chicago Ranks as Nation’s Most Affordable Market

As other reports harbor grim news about the state of housing affordability today, a new release from brokerage and tech firm ZipRealty finds there are still metros where homeowners can live without breaking the bank.

The company released Tuesday its list of the top 10 most affordable housing markets of 2014, ranking Chicago as the No. 1 affordable metro. Based on median home sales price data and estimated family income, ZipRealty calculated an Affordability Index of 2.2 for the Windy City, meaning homes are available for just more than twice the annual average household income ($72,400 against a median price of $160,000).

Among other areas surveyed, Philadelphia ranked second with an index of 2.4, followed by Orlando, Florida, and Richmond, Virginia, each at 2.6.

Unsurprisingly, the country’s most expensive markets can be found in California: Orange County, the San Francisco Bay Area, and Los Angeles topped the list. The average home in each of those areas sells for 11.8, 8.7, and 7.4 times the local family income, respectively.

Prices in the region tend to range higher than the rest of the country, in part because of the desirable location and in part due to its far lower inventory.

“While the cost of a home is still a very significant expenditure for families everywhere, it’s interesting to see these regional differences in affordability,” said ZipRealty CEO Lanny Baker. “The cities at the top of our list are far more affordable than other places, particularly the larger California metros.”