Report Finds Little Middle Ground for Middle-Class Homeowners

Homeownership is not as attainable for most as some of the latest financial news would lead one to believe. In fact, according to a recent ""report"":http://trends.truliablog.com/2013/10/middle-class/ from ""Trulia"":http://www.trulia.com reveals that for the middle class homeownership is more probable in the Midwest and the South.

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Buying a home is still a cheaper option than renting because mortgage rates are still below the housing bubble levels, but income levels have not risen to pre-crisis levels, therefore making homeownership unaffordable for many.

Trulia examined homes for sale across the country and determined what was affordable based on total monthly payments, defining an ""affordable home"" as one in which the monthly payment is less than 31 percent of the metro's median household income. The results of the study showed that those looking to live comfortably in their [COLUMN_BREAK]

homes should consider moving to Ohio, Indiana, South Carolina, or Alabama, where incomes are lower, but housing costs are even lower relative to income.

Two challenges face the middle class as they look for avenues to purchase homes. For one, affordable homes are not only in limited supply, but they're also limited in square footage, making space constraints noticeable and diminishing the worth of the home. Affordability is worsening nationwide, making homeownership become an increased challenge. Median incomes are not keeping pace with rising home prices and rising mortgage rates.

San Francisco, California, is the least affordable housing market in the United States. According to the Trulia study, the median price per square foot in San Francisco is nearly seven times higher than in Akron, Ohio--the most affordable city in the market, according to Trulia's data. There are areas on the East and West Coasts that are fairly affordable, but what homeowners save in expense, they give away in time, as most of these areas require long commutes to the cities.

""Affordability ranges widely both within and between metros,"" said Jed Kolko, chief economist for Trulia. ""In parts of New York and California, affordability is the most pressing housing concern--even though mortgage rates are still well below historical norms and buying is cheaper than renting. Yet elsewhere in the country, affordability is a distant worry compared with vacancies, foreclosures, and sluggish local job growth. All housing is local--and so are the biggest housing challenges.""