Affordable Housing Drops In Miami
Home prices are up 12 percent from a year ago. When combined with higher mortgage rates—up 1% since last spring —it chips away at affordable housing.
“Affordability has fallen to a five-year low, as home price increases easily outpaced income growth,” Lawrence Yun, chief economist for the NAR. “Expected rising mortgage interest rates will further lower affordable housing in upcoming months.” 
According to a new report by Interest.com, only eight housing markets out of the top 25 are deemed “affordable” for households that earn median income. Income growth is not keeping pace with home prices, the report notes.
Interest.com finds the following metro areas are the least affordable (the percentage reflects the amount by which median household income in the area falls short of the income needed to buy a median-priced home there):
- San Francisco: -47.93%
- San Diego: -37.71%
- New York: -35.82%
- Los Angeles: -30.31%
- Miami: -24.56%
On the other hand, Interest.com found the most affordable metro areas for housing are the following (the percentage reflects the amount by which median household income in the area exceeds the income needed to buy a median-priced home there):
- Atlanta: +24.92%
- Minneapolis: +23.86%
- St. Louis: +17.94%
- Detroit: +16.87%
- Pittsburgh: +11.33%
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Source: CNBC 10/23/2013
