Affordable housing in big cities is rare and considered the diamond in the ruff of real estate, especially when you look at the cities with the largest economies. A study was recently published by SmartAsset.Com showing how homebuyers are starting to be priced out of big city markets such as Nashville and Dallas as the home values are rising faster than household income.
In determining the cost of real estate residents can afford, SmartAsset.Com compared the ratio of median home values to the typical household income. For example, if the median home value in Sample City is $150,000 and the median household income is $50,000, their ratio would be 3:1.
SmartAsset.Com then used this formula on the top 100 largest cities in the country. Any city with a ratio 4:1 and above was listed. They then ranked the cities according to the percent change in home value to household income ratios. The city with the largest percent gain ranked first, while the one with the largest percent drop ranked last. Not only is the home value to income ratio high, but the ratio is also growing at an alarming rate. North Las Vegas topped the list with a 17.47% increase in a single year.
The only city in Florida to make the list was Jacksonville, coming in at number seven with an 11.73% increase. Other interesting results show Dallas at number four with a 13.21% change in one year. Nashville at number eight with 10.23%, Boise at number 11 with 8.93, Detroit at number 16 with 6.86%, and Cincinnati coming in at number 22 with a 5.62% increase.
The VP of Financial Education for SmartAsset.Com, AJ Smith, states, “families in these markets can better bear the brunt of rising home prices by carefully considering all the costs associated with homeownership, such as property taxes, repairs and enlisting the help of a financial planner to help them be prepared.”
For information on the real estate market in Southwest Florida, contact us directly at BrandyCoffey941@Gmail.Com or 941.404.4737.
Here’s the link for the Inman article: Https://Www.Inman.Com/2018/11/29/Which-Markets-Will-Homebuyers-Be-Priced-Out-Of-Next/?Utm_source=Dailyheadlines&Utm_medium=Email&Utm_campaign=Localnewsletter&Utm_content=708287_image_2_
Here’s the link for the SmartAsset study: Https://Smartasset.Com/Financial-Advisor/Where-Residents-May-Be-Getting-Priced-Out-Of-Affordable-Homes