Housing Most Affordable in Buffalo, N.Y. and Ohio
The metropolitan statistical area comprising Buffalo and Niagara Falls, N.Y. was the nation’s most affordable housing market among major metros with populations of more than 500,000, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI) for this year’s second quarter.
Also near the top of the list were Indianapolis, Ind.; Dayton, Ohio; and the area encompassing Youngstown, Warren and Boardman, Ohio-Pa., in that order.
Ohio scored the greatest number of major metros on the top-10 list, with a total of four — Dayton, Youngstown, Toledo and Akron. The state also had three of the 10 most affordable metro areas with populations under 500,000, including Mansfield, Lima and the area comprising Canton and Massillon.
Overall housing affordability across the U.S. fell for the second consecutive quarter, dipping 4.2 points to 45.9 on the HOI, indicating that approximately 46% of new and existing homes sold from April through June were affordable to median-income families. This decline was mostly attributable to a 7% increase in the average price of the homes sold during that period.
“One very positive factor was favorable interest rates, which continued to fuel prospects for homeownership in the second quarter,” noted NAHB President Dave Wilson. “That said, housing affordability is increasingly an issue in markets nationwide, and local governments should do all they can to keep fees and regulations from adding too much to the cost of homes.”
In Buffalo-Niagara Falls, nearly 90% of new and existing homes sold during the second quarter were affordable to families making the area’s median income of $57,000. The median price of homes that sold in Buffalo during the second quarter was just $75,000.
Meanwhile, in Los Angeles-Long Beach-Glendale, Calif. — the least affordable major metro area — only 3.6% of all homes sold were affordable to those making the median income of $54,500. The median sales price was $461,000.
California continues to be the least affordable state overall, with eight out of 10 metros on the least affordable list among markets with populations of more than 500,000 and nine out of 10 on the list for markets under 500,000.
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