A new report by Realtor.com finds that San Diego is the second least affordable market for a new home in the United States.
The report released Tuesday found that in the San Francisco and San Diego markets, the mortgage-to-income ratio is more than double the 28 percent threshold recommended by financial experts to avoid being “house poor.” Nationally, the ratio is 27.6 percent.
The data is based on purchasing a median-priced home with a 30-year fixed-rate mortgage.
Here are the five least affordable markets in mortgage-to-income ratio:
- San Francisco — 72.0 percent
- San Diego — 56.9 percent
- Los Angeles — 50.7 percent
- New York — 46.6 percent
- Miami — 42.2 percent
The most affordable markets were Detroit at 13.2 percent and St. Louis at 18.1 percent.
“Over the last 10 years, we have seen marketplace gyrations ranging from bubble to burst to recovery to stabilization, and we are now seeing a market of extremes on the affordability front,” said Jonathan Smoke, chief economist for Realtor.com. “Buyers — especially first-time home buyers — might feel more motivated as the overall market continues to improve, and this report provides potential buyers with local insight that is both informative and instructive.
“The cost of owning varies across the country, but there are major cities where owning an averaged priced home is within reach of the median income household.”
Realtor.com is the official website of the National Association of Realtors.
