Top five most and least affordable housing markets in U.S.

According to the  Real House Price Index (RHPI) ,released by FirstAmerican,  national affordability declined over 6 percent in December compared with a year ago, largely due to the year-end increase in mortgage rates. According to the report, written by Mark Fleming, rising rates typically reduce affordability, but the stronger economy is also increasing income growth that helps consumers maintain affordability.

RHPI measures the level of house prices relative to how much one can afford to buy based on income and the mortgage interest rate. In other words, it tracks consumer house-buying power. For example, if the price-to-house-buying power ratio is 1.0, then the median sale price is equal to the amount one can buy based on the mortgage rate and the median income.

Here are the five most and least affordable markets in the country:

 

Most Affordable:

City Median Income Median Sale Price Price to House-Buying Power Ratio
Cleveland, OH $53,332 $127,607 0.43
Cincinnati, OH $58,099 $145,794 0.45
Hartford, CT $77,509 $211,417 0.49
Oklahoma City, OK $51,541 $144,472 0.51
Columbus, OH $58,985 $167,401 0.51

 

Least Affordable:

City Median Income Median Sale Price Price to House-Buying Power Ratio
Los Angeles, CA $65,351 $568,877 1.57
San Jose, CA $114,401 $841,833 1.33
San Francisco, CA $96,130 $685,240 1.28
San Diego, CA $71,157 $495,986 1.26
New York, NY $76,071 $431,728 1.02

Source: FirstAmerican

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