Most/Least affordable cities to buy a home in America


Googling for a minute, here’s a home for $95K just east of Indianapolis

Most affordable: Indianapolis

Median home price: $105,000
Median income: $68,100
Affordability score: 94.5%

America’s most affordable housing market is the 33rd largest metro area in the United States, with 1.7 million people…

The turmoil in the auto industry, which Indianapolis had been closely associated with, has hurt the city. But increased diversification, which has made pharmaceutical companies, banks government agencies and insurers all important employers, has helped keep job losses in check. The unemployment rate was just 7.7% in September, according to the Bureau of Labor Statistics, well below the national rate of 9.8% that month.

Least affordable: New York City

Median home price: $425,000
Median income: $64,800
Affordability score: 19.2%

Home prices can be staggeringly high in many New York City metro area communities, but median income is not commensurately high; it’s under $65,000. That combo makes it the country’s least affordable major metro area…

After holding up better and longer than most housing markets, sales and prices around New York City have started to experience greater declines. The market there is highly influenced by what’s happening on Wall Street; when financial markets sneeze, the real estate industry there says “God bless you” with feeling.

Here in New Mexico, we’re still <8% unemployment rate – for citizens and legal residents.

Though I've written in the past about new high tech incomers keeping up our growth – HP, Intel, solar mfg companies – home construction has long been a mainstay of state economy. We are, after all, not only a destination for tourism; but, retirees and just plain folks looking for clean air. Telecommuting makes a lot possible.

A regional biggy in home construction – who simply pulled up and went on vacation when the bottom fell out of sleazy sub-prime mortgages – reappeared a few weeks ago in Albuquerque. Debt-free, still solid ownership of the land where they had previously started subdivisions, they've sold 3 lots in a week and have started moving dirt. And the mortgages are worth more than paper, this time.

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