RealtyHop Housing Affordability Index: August 2024

by Allyson Waddell

Map of the least and most affordable housing markets nationwide
In this August edition of the RealtyHop Housing Affordability Index, we examine what American households across the 100 largest cities need to spend on housing to find out:

Is homeownership affordable or possible for the average American family?

American families continue facing unaffordable housing markets in most cities, yet some markets may feel relief as interest rates decrease this month. The average 30-year fixed rate went down to 6.7925%, about 20 basis points lower than the previous month. Those looking to purchase property this season should consider what others in their local housing market must pay monthly.

Key Findings

Homebuyers in 88 out of the 100 major cities we analyzed would have to spend over 30% of their annual income on homeownership; that’s two less than last month.
In the 25 most unaffordable housing markets nationwide, homeowners spend at least 47% of their income on homeownership costs.
California remains unaffordable for average Americans. Seven of the ten least affordable markets are in California.
Two of the five least affordable housing markets — Irvine, CA, and Newark, NJ — became less affordable this month.
Median home prices increased in all five of the most affordable housing markets for the second month in a row: Toledo, OH; Detroit, MI; Fort Wayne, IN; Wichita, KS; and Buffalo, NY.

The 5 Least Affordable Housing Markets

1. Los Angeles, CA

Los Angeles holds onto its spot as the country’s least affordable housing market. The median list price dipped slightly to $1,075,000, and households can expect to spend 93.13% of their monthly income on mortgage payments and property taxes.

2. Miami, FL

Miami remains the second least affordable housing market this month. Families with a median household income of $57,117 will spend $4,186.05 monthly on their homeownership costs.

3. Irvine, CA

Irvine also maintained its spot in the rankings and is the third least affordable housing market. The median list price increased to $1,530,000, and homeowners with a median income must spend 84.78% of their income on mortgage payments and property taxes.

4. New York, NY

New York City maintains its spot as the fourth least affordable housing market. The median list price decreased to $840,500, and households can expect to spend $4,838.44 monthly on homeownership costs.

5. Newark, NJ

Newark is still the fifth least affordable housing market this month. Prospective buyers can expect to spend $409,900 on a home and direct 69.25% of their monthly income toward the costs of homeownership.

The 5 Most Affordable Housing Markets

1. Toledo, OH

Toledo again ranked as the most affordable housing market in the country. With a median list price of $115,000, households can expect to spend $763.19 monthly on mortgage payments and property taxes, or 19.37% of their annual income.

2. Detroit, MI

Detroit also held its spot in the rankings as the country’s second most affordable housing market. Households generating a median income of $39,316 can expect to spend 19.55% of their monthly earnings on homeownership costs.

3. Fort Wayne, IN

Fort Wayne remained the third most affordable housing market this month. The median list price increased slightly to $224,900, and buyers can expect to spend 26.38% of their income on mortgage and tax payments.

4. Wichita, KS

Wichita is the fourth most affordable housing market. Homeowners can expect to spend $1,397.12 a month on housing costs for a home with a median list price of $226,000.

5. Buffalo, NY

Buffalo ranked as the fifth most affordable housing market this month. With a median list price of $184,900, households can expect to spend 28.28% of their income monthly on the costs associated with homeownership.

Housing Markets to Watch

The following housing markets witnessed significant changes this month.

Irving, TX

Irving is now the 40th least affordable housing market in the country. While the city only jumped four places in our rankings, the median list price increased by 4.82% to $434,999. This significant increase means households with a median income need to direct 43.29% of it toward housing costs.

Plano, TX

Another part of Texas is also of note this month. Plano dropped eight spots to become the 57th least affordable housing market. Families with a median income of $110,029 can expect to spend $3,576.34 monthly on their mortgage payments and property taxes.

Chesapeake, VA

Chesapeake households also watched their market become less affordable this month, moving to the 81st spot on our list. The median list price increased to $435,000, and families can expect to direct 31.92% of their income toward the costs of homeownership.

Methodology

The RealtyHop Housing Affordability Index analyzes proprietary and ACS Census data to provide an index of housing affordability and homeownership burden across the 100 most populous cities in the country. Median home prices are calculated using over 800,000 listings in the RealtyHop database over the month prior to publication.

To calculate the index, the following statistics are used:

1) Projected median household income

2) Median for-sale home listing prices via RealtyHop data

3) Local property taxes via ACS Census data

4) Mortgage expenses, assuming a 30-year mortgage, a 6.7925% mortgage interest rate based on reported weekly averages in July, and a 20% down payment.