Middle-class affordability shrinks in key housing markets

Mortgage News You Can Use

HousingWire – Brena Swanson

For the typical middle-class household, owning a home is highly achievable, just as long as they choose to live in the Midwest.

In the middle of the country, the average household can afford to live in at least 80% of the homes on the market. But move to San Francisco, Orange County, Los Angeles, New York and San Diego and fewer than 30% of middle-class households can afford properties, Trulia noted.

"For the middle-class today, homeownership is well within reach in some parts of the country, but in others, it’s more of a pipe dream than the American Dream,” Jed Kolko, chief economist with Trulia, said. "Even after taking income differences into account, homeownership affordability varies hugely across the country." The survey determined affordability based on whether the total monthly payment for that home was less than 31% of the metro’s median household income.

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