LendingTree analysis shows the premium paid for the oldest markets
The 13 colonies that declared their independence from Great Britain on July 4, 1776, are today the most expensive housing markets in the United States.
An analysis from LendingTree’s chief economist Tendayi Kapfidze finds that the weighted average home price in the former 13 colonies is $239,351, nearly $27,000 higher than the weighted average home price of $212,635 for the rest of the US.
The analysis uses the states that occupy the land of the original 13 colonies including Connecticut, Delaware, Georgia, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Virginia, and West Virginia; along with Washington, DC.
States and Capitals are ranked based on the calculated "affordability surplus", which uses median income, median home value, the estimated monthly payment based on home value, the estimated monthly (based on income) that would be considered 'affordable' based on the 28% rule-of-thumb.
Despite the high prices, each of the 13 states were found to be affordable and apart from Boston, all of the state capitals were also affordable.
Washington, DC was not affordable to median income earners, missing by around $392 per month.
Most affordable states:
1. New Hampshire
- Median Home Value = $244,900
- Median Income = $71,305
- Likely Monthly Payment= $980
- $684 'Affordability' Surplus
2. Maryland
- Median Home Value = $296,500
- Median Income = $78,916
- Likely Monthly Payment= $1,186
- $655 'Affordability' Surplus
3. Pennsylvania
- Median Home Value = $170,500
- Median Income = $56,951
- Likely Monthly Payment= $682
