Friday, February 06, 2015

Dallas gets “C” grade for home affordability

Interest.com
The Dallas area gets a lower than expected grade in a comparison of housing affordability in the country’s top 25 metro areas.
Dallas got a “C” grade for home affordability in the new report by Bankrate Inc.
“Dallas-Fort Worth ranks ninth among the 25 largest U.S. metropolitan areas in terms of home affordability, according to a new Interest.com report,” Bankrate spokesman Ted Rossman says. “The median household income in the DFW metro exceeds the income required to purchase a median-priced home in the area by 1 percent.”
The study found that a median-income household can only afford a median-priced home in 10 of the 25 largest U.S. metropolitan areas.
“Low mortgage rates are helping home affordability to some extent, but the key ingredient – which has been missing to this point – is substantial income growth,” Mike Sante, managing editor of Interest.com, said in the report. “Millennials, in particular, are struggling to overcome their student loans and save enough money for a down payment.”
The most affordable housing markets in the comparison were in Minneapolis, Atlanta and St. Louis.
The least affordable U.S. home markets were in San Francisco, San Diego and New York.
“In the least affordable cities, it’s not uncommon for families to spend 50 percent or 60 percent of their income on housing costs,” Sante said. “I’ve even had San Franciscans tell me that they must devote 70 percent of what they make to keep a roof over their head — and they were renting. Owning is out of the question.”
Steve Brown