Unison Home Affordability Report 2017

Unison Affordability Report 2017 US Map Large

[cs_content][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 0px 0px 45px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]Unison Affordability Report 2017 US Map Large

The Unison Home Affordability Report (below) answers the following question: can the typical family or individual afford to buy a home in major U.S. cities?

For this report, we focused on 25-44 year olds, who make up the majority of first-time homebuyers. It is important to focus on first-time homebuyers because this is the group that is trying to get into the housing market while overcoming the many hurdles in their way.

The report shows — at a city and neighborhood level —  how many homes are accessible to the median household within this age group in different regions across the U.S.

As is clear in the data below, home affordability varies greatly from city to city – and from neighborhood to neighborhood. Here are some of the key takeaways from the report:

  • San Francisco is the least affordable city in the U.S., where only 1.4% of homes are within reach of those who earn the median income in this age group.
  • Coastal cities present challenges but still offer options in cities like Los Angeles, New York, Boston, Seattle, and Portland, where anywhere from 16% to 52% of homes are affordable for people with the median income in this age group.
  • The Midwest offers much greater affordability, with at least 78% of homes in cities like Chicago, Minneapolis, and Kansas City within reach of households earning the median income in this age group.
  • Home affordability remains high in many Southwestern and Western cities, where at least 70% of homes in Phoenix, Las Vegas, Denver, and Salt Lake City are affordable for a household earning the median income in this age group.

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The numbers above assume a 10% down payment, but home buyers aged 25-44 with the median income can significantly improve their outlook by bringing a 20% down payment to their housing search. For example:

  • In San Francisco, a 20% down payment would increase affordability from 1.4% to 3.8% and open up new neighborhoods.
  • In competitive coastal markets, a 20% down payment makes a big difference, increasing affordability to 30% in Los Angeles, 38% in New York, 52% in Seattle, 54% in Boston, and 68% in Portland.

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Home affordability with a 10% down payment

City Total Homes Median Income Maximum Monthly Payment Maximum Home Price with 10% Down # of Homes Affordable with 10% Down % of Homes Affordable with 10% Down
SAN FRANCISCO  183,336  $92,501  $3,469  $557,751  2,537 1%
LOS ANGELES  2,107,188  $62,312  $2,337  $375,721  335,178 16%
NEW YORK  905,940  $74,397  $2,790  $448,590  170,470 19%
BOSTON  179,544  $84,955  $3,186  $512,251  65,850 37%
SEATTLE  261,451  $75,822  $2,843  $457,182  100,322 38%
PORTLAND  272,328  $64,635  $2,424  $389,728  141,377 52%
MIAMI  521,369  $52,040  $1,952  $313,784  312,859 60%
ATLANTA  273,378  $58,121  $2,180  $350,451  182,114 67%
DALLAS  310,734  $61,033  $2,289  $368,009  208,421 67%
DENVER  304,570  $69,754  $2,616  $420,594  214,091 70%
NASHVILLE  142,449  $57,739  $2,165  $348,148  101,564 71%
BOISE  84,316  $54,297  $2,036  $327,393  61,488 73%
SALT LAKE CITY  170,020  $63,520  $2,382  $383,005  126,111 74%
NEW ORLEANS  129,898  $49,297  $1,849  $297,245  98,170 76%
CHICAGO  732,684  $66,084  $2,478  $398,465  567,994 78%
CHARLOTTE  273,804  $57,933  $2,172  $349,317  218,888 80%
PHOENIX  382,443  $56,579  $2,122  $341,153  313,484 82%
LAS VEGAS  451,480  $53,060  $1,990  $319,935  374,281 83%
SAN ANTONIO  495,818  $55,566  $2,084  $335,045  428,746 86%
MINNEAPOLIS  336,133  $74,490  $2,793  $449,151  298,125 89%
PITTSBURGH  242,672  $61,892  $2,321  $373,189  224,348 92%
KANSAS CITY  244,353  $62,178  $2,332  $374,913  235,224 96%

 

Home affordability with a 20% down payment

City Total Homes Median Income Maximum Monthly Payment Maximum Home Price with 20% Down # of Homes Affordable with 20% Down % of Homes Affordable with 20% Down
SAN FRANCISCO  183,336  $92,501  $3,469  $667,804  5,895 3%
LOS ANGELES  2,107,188  $62,312  $2,337  $449,857  629,031 30%
NEW YORK  905,940  $74,397  $2,790  $537,103  343,321 38%
SEATTLE  261,451  $75,822  $2,843  $547,391  136,861 52%
BOSTON  179,544  $84,955  $3,186  $613,326  97,042 54%
PORTLAND  272,328  $64,635  $2,424  $466,627  183,902 68%
MIAMI  521,369  $52,040  $1,952  $375,699  386,232 74%
ATLANTA  273,378  $58,121  $2,180  $419,600  203,702 75%
DALLAS  310,734  $61,033  $2,289  $440,623  233,326 75%
NASHVILLE  142,449  $57,739  $2,165  $416,842  112,429 79%
DENVER  304,570  $69,754  $2,616  $503,583  244,644 80%
NEW ORLEANS  129,898  $49,297  $1,849  $355,896  107,349 83%
BOISE  84,316  $54,297  $2,036  $391,993  70,240 83%
SALT LAKE CITY  170,020  $63,520  $2,382  $458,578  141,741 83%
CHICAGO  732,684  $66,084  $2,478  $477,088  617,802 84%
CHARLOTTE  273,804  $57,933  $2,172  $418,243  233,505 85%
PHOENIX  382,443  $56,579  $2,122  $408,468  338,419 88%
LAS VEGAS  451,480  $53,060  $1,990  $383,062  406,623 90%
SAN ANTONIO  495,818  $55,566  $2,084  $401,154  448,073 90%
MINNEAPOLIS  336,133  $74,490  $2,793  $537,775  310,243 92%
PITTSBURGH  242,672  $61,892  $2,321  $446,824  230,511 95%
KANSAS CITY  244,353  $62,178  $2,332  $448,889  238,240 97%

About this report

The Unison Home Affordability Report uses income data from the 2015 U.S. Census American Community Survey to estimate median household incomes by city and neighborhood. The Report uses recorded property data at the county or local level and Unison’s proprietary models to estimate property values in each city and neighborhood.

To estimate home affordability by city or neighborhood, the Report assumes a 10% or 20% down payment with associated monthly costs, at a 4% mortgage interest rate on a 30-year fixed-rate mortgage, with a maximum allowable DTI ratio of 45%. The Report uses property level data and income data to determine the percentage of homes that can be purchased with the median income in each area.[/cs_text][/cs_column][/cs_row][/cs_section][/cs_content]

About the Author
Benjamin Feldman Director of Content