Despite rapidly increasing prices across the United States, some markets remain affordable to the average family. A recent index released by the National Association of Home Builders (NAHB) and Wells Fargo has therefore compiled a list of the most affordable housing markets. These cities have median prices that are affordable to the families making the average household income.
In the wake of the previous bubble, the housing sector continued to exhibit volatile conditions. Prices plummeted, all but eviscerating the little equity homeowners had. Those hit the hardest witnessed their mortgage trump the actual value of their house. As a result, foreclosures and short sales became rampant, epitomizing the sate of the economy.
However, the housing sector has recently become the beneficiary of improving conditions. A distinct lack of inventory, in association with record-low mortgage rates, played a pivotal role in the recovery we are in the midst of. Prices were subjected to significant increases as bidding wars took place over the lack of available housing. Certain geographical regions, California in particular, have seen prices return to pre-bubble highs.
While leading the nation towards recovery, California harbors four of the top five least affordable housing markets.
Conversely, certain cities have yet to partake in the recovery to the extent California has. Prices in these areas remain much more affordable for the average family. Ogden, UT remains the nation’s most affordable housing market, as 92.3 percent of the homes there are deemed “affordable.” In the second quarter of 2013, 69.3 percent of homes sold on a national level were affordable to families with a median income of $64,4000.
The most affordable housing markets in the second quarter of 2013 are as follows: