In December, Estate Hop has released its Housing Affordability Index.
The study looked at the 100 most populous cities in the United States to provide a measure of housing affordability and the burden of home ownership.
To calculate the index, the following statistics were used:
- expected median household income
- median price of home for sale listings using RealtyHop data
- local property taxes using American Community Service census data
- mortgage fees, assuming a 30-year mortgage, 5.5% interest rate and 20% down payment.
Miami, Florida tops the list as the least affordable housing market in the United States. The city saw a 0.50 percent increase in the median asking price for a home, from $595,000 to $598,000.
According to RealtyHop, a family with an average income of $44,581 in Florida would need to spend 85.67% of their salary on housing expenses.
The 5 least affordable housing markets in the US
- Miami, Florida
- Los Angeles, Calif
- New York, New York
- Newark, NJ
- Hialeah, Florida
Los Angeles, California finished second on the list. The median home purchase price dropped $1,000, but it’s still the sixth consecutive month that the California city remained the second least affordable city.
According to RealtyHop, with an average salary of $69,695, someone can expect to spend 83.06% of their income on housing costs, such as mortgages and taxes.
New York is the third least affordable city in the United States, with the average purchase price increasing by 1.93%. A resident with an average salary of $68,129 will need to spend 78.97% of their income on housing, which equates to $4,483.45 a month.
Though the median purchase price has risen, New York is still cheaper than it was this summer, when homeowners spent 84.61 percent of their income on housing costs, according to Estate Hop.
Subscribe now: Be smarter about your money and your career with our weekly newsletter
Not to be missed
The top 10 cities that offer the best value for home buyers – none of them are in Florida
These are the best US states to raise a family if you earn over $70,000 a year
