The company that works with real estate data, RealtyHop, released the expert-conducted analysis revealing the list of United States cities with the most expensive real estate, where Miami ranked first.
The article published on the company’s blog states that the real estate market in the North American nation is gradually cooling, but home acquisition is still very difficult in some of the country’s major cities.
In 42 of the 100 cities included in the study, the average American must spend at least 40 percent of their income to pay the mortgage and property taxes they buy.
To calculate home affordability, the analysts took the property’s value and compared it to the average family income in the country, adding mortgage costs and local property taxes.
This calculation was performed using the most common mortgages in the United States that are 30 years, with a 20 percent down payment and an interest rate of 5.5 percent. Considering this data, the 12 least affordable cities in the country are the following:
The city of Miami tops the list with an average family income of $44,581 a year and an average home price of $610,000.
However, experts insist that this may be an incorrect calculation, since especially in the city of Miami the average value of real estate has been updated, but that of income has not.
Cities where real estate is more expensive / Pixabay Photo:
This place has created thousands of new jobs in the last two years. In the workplace, it has risen to a level previously paid, making it the city with the highest wage growth in the country. So this $44,000 annual income may be an outdated figure, but it is the latest official one.
Based on this income, a Miami family would have to invest 87% of their income to purchase a home.
In second place is Los Angeles, California, a city where the median income is $69,965 a year and the median home value is $975,000. 85.34% of income must be invested to pay for a home.
New York is the third most expensive city to live in. The average income in the city is $68,129 per year and the average cost of a home is $925,000. The percentage required to pay for the apartment is 82.47 percent.
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In the same area follows the city of Newark, New Jersey, where the median income is almost $39,000 per year and the median value of a home is $385,000, which is an investment percentage of 77.52% of income to buy a home.
Hialeah in Florida is fifth while Long Beach in California is sixth, both with about 70% home-affordability percentages.
Seventh is San Francisco, California, where they have the highest median income in the country: $126,117 a year. But it also has the highest housing costs, averaging $1.388 million to buy a home.
California cities ranked eighth, ninth, tenth and eleventh: San Diego, Anaheim, Santa Ana and Oakland. The final city on the list is Boston, where the median income is nearly $80,000 per year and the median home value is $775,000, which converts the percentage required to purchase to 59.38 percent.
Writing from Cubans around the world