In recent years, soaring house prices and mortgage rates have left many potential homebuyers out in the cold. However, there is good news for middle-income families as a recent report from the online real estate marketplace platform Zillow shows that some cities are more affordable for them than others. Buffalo in the state of New York tops the list, with over 55% of properties in the housing market considered affordable.
According to the Zillow report, in July of this year, approximately 439,000 housing units were deemed affordable for middle-income families. This marks the highest level since August 2022, representing a 20% increase from a year ago. Affordable housing means that the total monthly housing payments (including mortgage, taxes, insurance, and maintenance costs) do not exceed 30% of the buyer’s income.
The increase in the number of affordable housing units is primarily due to a rebound in overall housing inventory, which has grown by 18% compared to last year, thus slowing down the rate of price hikes.
More and more homes are becoming affordable for middle-income residents across the United States, especially in many cities east of the Mississippi River, where over half of the homes for sale are within reach of middle-income families. Leading the pack is Buffalo, New York.
Here are the top ten cities with the highest percentage of affordable housing for middle-income families in the housing market:
On the other hand, the percentage of affordable housing in major coastal markets is generally low, with Los Angeles ranking lowest at only 3%. This indicates that in Los Angeles, only 3% of the listed homes are affordable for middle-income families. San Diego comes next with an affordability rate of 6.4%.
Below are the top ten cities with the lowest percentage of affordable housing for middle-income families in the housing market:
This article drew insights from The Hill’s reporting.