A new study on home affordability shows a wide divergence in affordability among US cities for buyers with a 10% down payment
San Francisco remains the country’s least affordable city for first-time homebuyers according to the report, authored by homeownership investment company Unison.
With the median household income in the city of $92,501 for 25-44 year olds (the age group of the majority of first-time homebuyers) and the maximum monthly mortgage amount of $3,469 for that earning power, this group can only afford a dismal 1.4% of homes in San Francisco.
Coastal cities still pose limited alternatives, but areas such as Los Angeles, New York and Boston still offer a bigger percentage of homes that first-time homebuyers, as 16% to 52% of homes are within their reach in these areas.
The Midwest is a much more affordable area, as at least 78% of homes in cities such as Chicago, with a median household income of $66,084 and a maximum monthly mortgage payment of $2,478, are within their reach.
Here are some cities and their home affordability with a 10% and 20% down payment:
10% down payment:
|
City |
Total Homes |
Median Income |
Maximum Monthly Payment |
Maximum Home Price with 10% Down |
# of Homes Affordable with 10% Down |
% of Homes Affordable with 10% Down |
|
183,336 |
$92,501 |
$3,469 |
$557,751 |
2,537 |
1% |
|
|
2,107,188 |
$62,312 |
$2,337 |
$375,721 |
335,178 |
16% |
|
|
905,940 |
$74,397 |
$2,790 |
$448,590 |
170,470 |
19% |
|
|
179,544 |
$84,955 |
$3,186 |
$512,251 |
65,850 |
37% |
|
|
261,451 |
$75,822 |
$2,843 |
$457,182 |
100,322 |
38% |
|
|
272,328 |
$64,635 |
$2,424 |
$389,728 |
141,377 |
52% |
20% down payment:
|
City |
Total Homes |
Median Income |
Maximum Monthly Payment |
Maximum Home Price with 10% Down |
# of Homes Affordable with 20% Down |
% of Homes Affordable with 20% Down |
|
272,328 |
$64,635 |
$2,424 |
$466,627 |
183,902 |
68% |
|
|
521,369 |
$52,040 |
$1,952 |
$375,699 |
386,232 |
74% |
|
|
273,378 |
$58,121 |
$2,180 |
$419,600 |
203,702 |
75% |
|
|
310,734 |
$61,033 |
$2,289 |
$440,623 |
233,326 |
75% |
|
|
142,449 |
$57,739 |
$2,165 |
$416,842 |
112,429 |
79% |
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