A surge in demand for homes in the United States, in addition to limited housing inventory, has created a sellers market unlike anything seen in recent memory. Homes are now selling faster than ever before — and also for more money than ever before. Here is a look at the cities where the middle class can no longer afford housing.
Much of the country has long faced a housing affordability crisis, and rapidly rising home values are further exacerbating the problem. Despite the growing gap between income and housing costs, some parts of the country offer much more affordable housing than others.
According to the most recently available figures from the U.S. Census Bureau, the typical American home is worth $217,500, 3.5 times more than the national median household income of $62,843. In nearly every state, there is at least one community where the ratio of home value to income is lower than it is nationwide.
Using data from the Census’ American Community Survey, 24/7 Wall St. identified the most affordable place to live in every state. We ranked all cities, towns, villages, and unincorporated communities with populations of at least 10,000 by the median home value to median annual household income ratio.
With home values more affordable for the local incomes, the places on this list tend to have higher than average homeownership rates. In all but 10 communities on this list, the homeownership rate exceeds the homeownership rate across the state as a whole. Only four places on this list have a lower homeownership rate than the 64% rate nationwide. Here is a look at the states where the most people live with their parents.
Click here to see the least expensive place to live in every state.
Click here to see our methodology.
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