Redfin <\/strong>Senior Economist Sheharyar Bokhari. \u201cThe most affordable homes for sale are no longer affordable to people with lower budgets due to the combination of rising prices and rising rates. That\u2019s locking many Americans out of the housing market altogether, preventing them from building equity and ultimately building lasting wealth. People who are already homeowners are sitting pretty, comparatively, because most of them have benefited from home values soaring over the last few years. That could lead to the wealth gap in this country becoming even more drastic.\u201d<\/p>\nSan Francisco, Austin and Phoenix buck the trend<\/h2>\n
A homebuyer in San Francisco must earn $241,200 to afford the typical “starter” home, down 4.5% ($11,300) from a year earlier. Austin buyers must earn $92,000, down 3.3% year over year, and Phoenix buyers must earn $86,100, down about 1%. <\/p>\n
Those are also the metros where prices of starter homes have declined most, with median sale prices down 13.3% to $910,000 in San Francisco, down 12.2% to $347,300 in Austin, and down 9.7% to $325,000 in Phoenix.<\/p>\n
The housing markets in Austin and Phoenix have fallen back down to earth since the remote-work relocations craze stopped. High mortgage rates and scarce listings brought down home prices as well.\u00a0<\/p>\n
Florida is the state where the income necessary to buy a starter home has risen the most <\/h2>\n
The biggest uptick of the 50 most populous US metro goes to Fort Lauderdale, Florida. There, buyers need to earn $58,300 per year to purchase a $220,000 home, up 28% from a year earlier. Next comes Miami, where buyers need to earn $79,500 (up 24.8%) to afford the typical $300,000 starter home. Third is Newark, NJ, where buyers need $88,800 (up 21.1%) to afford a $335,000 home. The three metros also had the biggest starter-home price increases, with prices up 15.8% year over year, 13.2% and 9.8%, respectively.<\/p>\n
Meanwhile, starter-home prices are down year over year in 13 metros, mostly expensive West Coast markets, with the next-biggest declines in San Jose, CA (-8.7% to $925,000), Sacramento, CA (-7.3% to $417,000) and Oakland, CA (-7.3% to $630,000). <\/p>\n
Starter-home prices also dropped in Las Vegas, Seattle, Denver, Los Angeles, Portland, OR, Anaheim, CA, San Diego, Riverside, CA, Pittsburgh and Minneapolis. However, in those places, lower prices often don\u2019t make up for higher mortgage rates.<\/p>\n
More than one-third (36.6%) of the country\u2019s starter homes were purchased in cash in May, down just slightly from the previous month\u2019s decade-high and up from 35.2% a year earlier.<\/p>\n
Real estate investors are buying up a sizable chunk of today\u2019s affordable homes. A record 41% of investor purchases were small homes\u2013those with 1,400 or fewer square feet\u2013in the first quarter. That\u2019s up from 37% a year earlier.<\/p>\n
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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"High mortgages and stubbornly elevated home prices are worsening the housing affordability crisis. A first-time homebuyer must earn roughly $64,500 per year to afford the typical U.S. \u201cstarter\u201d home, up 13% from a year ago, according to a new report from Redfin.\u00a0 In June, the typical starter home sold for a record $243,000, up 2.1% […]<\/p>\n","protected":false},"author":2,"featured_media":4407,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33,1],"tags":[],"_links":{"self":[{"href":"https:\/\/frankbuysphilly.com\/wp-json\/wp\/v2\/posts\/4406"}],"collection":[{"href":"https:\/\/frankbuysphilly.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/frankbuysphilly.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/frankbuysphilly.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/frankbuysphilly.com\/wp-json\/wp\/v2\/comments?post=4406"}],"version-history":[{"count":0,"href":"https:\/\/frankbuysphilly.com\/wp-json\/wp\/v2\/posts\/4406\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/frankbuysphilly.com\/wp-json\/wp\/v2\/media\/4407"}],"wp:attachment":[{"href":"https:\/\/frankbuysphilly.com\/wp-json\/wp\/v2\/media?parent=4406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/frankbuysphilly.com\/wp-json\/wp\/v2\/categories?post=4406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/frankbuysphilly.com\/wp-json\/wp\/v2\/tags?post=4406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}