While home affordability is on the decline across most of the nation, in Metro Detroit, we’re one of the few places you can make the median income ($51,000) and afford a house at the median price ($149,000) according to a recent report.
Detroit is fourth most affordable in a list that joins Minneapolis, Atlanta, St. Louis and just below the D, Pittsburgh, in home affordability. Now, to be clear, this isn’t just about home prices, but also income. According to Interest.com, the median income of a Metro Detroiter is 14% more than what is required to purchase an average home.
The median household income is one where half the households earn more and half earn less. The median home price is where half the homes sell for more and half sell for less.
Across the country, home prices were up 4%, while in the 25 biggest metros they climbed 6%. But incomes didn’t keep up, rising just under 2% nationwide and a little more than 2% in the big cities.
“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. Millennials, in particular, are struggling to overcome their student loans and save enough money for a down payment.” – Mike Sante, managing editor of Interest.com.
What are the least affordable cities? Bottoming out the list is Miami, Los Angeles, New York, San Diego, and the least affordable city in America is San Francisco. Sure, median income is higher at $79,264 but the median home price? A whopping $769,900.
For that price in Metro Detroit, you can live almost anywhere you want.