In an attempt to more accurately gauge home affordability, the folks at Zillow have devised a system that examines both current home values and median household income. It measures those statistics for 133 metro areas of the US.
Since median household income figures are only available through 2010, Zillow also researches figures from the Bureau of Labor Statistics in an effort to be more precise. Based on those findings, combined with more information from the National Association of Home Builders and Wells Fargo, here’s a look at a few of the nation’s most affordable areas:
Median home price: $102,000.00
Median income: $66,900.00
With homes priced well below the national average, Indianapolis is also seeing an economy strengthened by its diversity. Along with health care, manufacturing and retail interests, the iconic Indianapolis 500 and NCAA basketball championships are also big draws.
Median home price: $81,000.00
Median income: $63,300.00
Although the city’s population has been on the wane, its unemployment rate is slowing down. Consider that along with home affordability and things are looking up!
Median home price: $85,000.00
Median income: $54,500.00
Although things have been rocky here in the last few years with high unemployment and falling home prices, the economic picture is improving. Thanks to low taxes, a convenient location between Tampa and Orlando, and a new Legoland theme park, many are shopping in Lakeland for smart home buys.
Median home price: $106,000.00
Median income: $66,000.00
Stable jobs in the education, health, and financial sectors are keeping the city’s median income above the national average. That is a strong incentive to become a homeowner in Syracuse.
Median home price: $110,000.00
Median income: $71,300.00
The Queen City is home to numerous Fortune 500 companies, including Kroger, Proctor and Gamble, and Macy’s. With a median income 10% above the US average, its no wonder that home sales there are on the increase.
On the flip side housing markets such as Washington, DC, Santa Ana, Stamford, and New York City are leading the pack as some of the least affordable markets in the country. The median home price in DC is close to $729,000 and in NYC the average jumps to $1.27 million.
You can find more stats on Zillow’s site by reading Comparing Price-to-Income Ratios to Affordability Across Markets written by Svenja Gudell.