Wednesday, May 21, 2008

Nation's most and least affordable housing markets

(eFinance) The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) was released today. The index determines the percentage of residents who can afford a median priced home in a given area.

Without further ado, here are the least and most affordable housing markets according to the HOI:

Most Affordable Housing Markets

Metro Area Median Home Price Median Income % of People Who Can Afford a Home
Kokomo, IN $88,000 $57,400 95.3%
Lima, OH $80,000 $56,900 95.0%
Cumberland, MD-WV $70,000 $50,100 93.7%
Lansing-East Lansing, MI $97,000 $62,700 93.0%
Springfield, OH $76,000 $54,500 92.6%
Battle Creek, MI $75,000 $54,600 92.0%
Wheeling, WV-OH $79,000 $45,800 91.5%
Bay City, MI $80,000 $53,700 90.2%
Indianapolis, IN $106,000 $65,100 90.1%
Monroe, MI $133,000 $66,200 90.0%

Source: National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI)

As always, the most affordable housing markets are concentrated in Ohio, Michigan and Indiana. More than 90 percent of the people who live in the metros on this list can afford a median priced home.

Least Affordable Housing Markets

Metro Area Median Home Price Median Income % of People Who Can Afford a Home
Los Angeles-L Bch-Glendale, CA $412,000 $59,800 10.5%
New York-W Plains-Wayne, NJ-NY $490,000 $63,000 12.5%
San Francisco-S Mateo-R City, CA $680,000 $94,300 12.7%
Salinas, CA $393,000 $64,800 13.1%
San Luis Obispo-P Robles, CA $425,000 $67,000 13.8%
Napa, CA $449,000 $79,600 15.8%
Miami-Miami Bch-Kendall, FL $300,000 $49,200 16.5%
Santa Ana-Anaheim-Irvine, CA $470,000 $84,100 17.4%
Santa Barbara-S Maria-Goleta, CA $380,000 $65,200 19.6%
Nassau-Suffolk, NY $420,000 $97,100 20.1%

Source: National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI)

The Los Angeles area tops the list of the least affordable housing markets for the 14th consecutive time. Only 10 percent of the people who earn the median household income of $59,800 can afford a median priced home.

It is interesting to note that homes in Los Angeles sell for almost five times more than homes in Kokomo, IN (the most affordable housing market.) Yet, the median household income for both areas is almost exactly the same.

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