A recent study conducted by Interest.com has found that Seattle is home to the 7th least affordable housing market in the country, based on criteria including median home price, median income, average property taxes and insurance costs, consumer debt, and local mortgage rates. The study assigned a ‘C’ grade to cities where households who make the median income can afford the median-priced home, and Seattle fell short of that, earning a ‘D’ grade with our median income of $67,479 and median home price of $357,400.
In their analysis of the study, mynorthwest.com reports that although housing price growth has slowed recently, the median price for a home in the top 25 largest metro areas grew by 6 percent over the last year, whereas incomes only grew by 2 percent. This is compounded by the fact that in 2013 the recovering housing market grew by leaps and bounds in many cities, and grew by 12 percent nationally, giving wages no chance of keeping up. In the interest.com article summarizing the study, Adam DeSanctis, a media manager for the National Association of Realtors says, “Affordability would improve at a faster pace if wage growth would pick up. We’ve seen an improvement in job growth, but wages have remained somewhat static.”
Not surprisingly, topping the list of unaffordable markets is San Francisco, which earned an ‘F’ for affordability, as did New York City, San Diego, Los Angeles, and Miami. Boston came in at number six with a D-. No cities earned an ‘A’ grade for affordability. Looking for an affordable place to relocate? Head to Minneapolis, where the median housing price is more than $100,000 less than Seattle’s at $212,900, but the median wage is nearly identical at $67,194.
If you are interested in buying a home in the Seattle area, contact your local real estate agent today!