Homes.com analysis reflects rising share of those buying alone
The traditional image of first-time homebuyers being a young couple or family is not the reality for millions of Americans.
According to an analysis in 2017 from the Pew Research Center, 42% of people in America live alone, rising to 61% among under 35s – and that makes it tough to get on the housing ladder with rising prices and rates.
A new report this month from Homes.com reveals the cities that are most affordable for solo buyers – and those they should avoid!
The analysis looked at 311 US towns and cities with populations of 100,000 or more; and the median price of a one-bedroom home; to determine affordability of a mortgage as a percentage of monthly income.
It found that the most affordable market is Edison, New Jersey, where the average mortgage on a one bedroom property costs just 8.78% ($292) of the median monthly income of $3,325.83.
Overland Park, Kansas (8.96% of monthly income), Lafayette, Louisiana (10.1%), Sterling Heights, Michigan (10.87%) and West Palm Beach, Florida (11.15%) complete the top 5 most attractive cities when buying alone.
“Key for solo buyers is to consider locations where jobs are plentiful, yet housing costs are still catching up to demand,” explains Grant Simmons of Homes.com. “Many of these areas saw longer term effects of the great housing recession with slower recovery, yet these areas are still desirable, have benefitted from an improved economy, and are attracting new jobs which allow a fair balance of housing costs to potential income.”
And the cities to avoid?
The bottom 5 cities for first-time solo buyers in terms of affordability are led by New York City with the average monthly mortgage repayments on a one bedroom home coming in at 114.55% of the median monthly salary.
California takes 16 of the 20 least affordable markets and dominates the remainder of the top 5: Detroit, Michigan (100.01%), Oxnard, California (99.91%), Santa Clara, California (97.89%) and Elk Grove, California (93.13%).
