Researchers at refiguide.org [1] recently published findings related to the most and least affordable places to purchase homes today.
With the arrival of the pandemic, the real estate market has experienced unprecedented shifts. From record-low mortgage rates to more Americans spending time at home due to safety precautions and stay-at-home orders, home prices, and supply and demand have been directly affected.
Specifically, the nation is seeing a surge in homebuying within many housing markets, even at a time when the economy is struggling and unemployment levels are skyrocketing. Data reveals that Americans are on the move (literally), many of them seeking homes in a much wider circle of consideration than they would have previously. This open-mindedness can be directly attributed to increased flexibility in remote working, perhaps even on a permanent basis lasting past the pandemic.
So where are the hot spots that Americans are most considering now? The data professionals at RefiGuide.org specifically studied those Americans searching for a home based on the affordability factor.
They found that many of the most affordable housing markets were in the South and Midwest. The study particularly pinpointed the city of Youngstown, Ohio as the most affordable place of all. In Youngstown, the median household income in one year is greater than the average number on the price tag for a new home. Fast on the heels of Youngstown in affordability was Jackson, Mississippi.
In stark contrast, California was the state that took home the proverbial prize for being considered the least affordable place to purchase a home. Specifically pinpointed as being the most expensive (least affordable) of all the Golden State’s locales? Newport Beach, following closely by the ritzy LA enclave of Santa Monica.
RefiGuide.com's financial journalist Bryan Dornon added that [1] housing affordability has long been a "hot button issue" in America.
"Over the last decade housing prices have increased at a tremendous rate and made homeownership beyond the reach of many Americans," he wrote. "A couple of different forces are affecting the housing market as a result of the pandemic. On one hand many people are laid off, meaning many people in the economy are housing insecure. On the other hand, many Americans are using the pandemic to reassess where they want to live.
He shared a data sheet for the housing prices, median income, and affordability rate of more than 600 places in America, which can be found here [1].