Pittsburgh is one of the most affordable cities to live in the US, according to Realtor.comâs first Mortgage Affordability Report.
The new reportâpublished on March 24th by the San Jose, CA-based residential real estate websiteâpulled data from the 25 largest housing markets in the US and looks at affordability on a national level as the spring housing season approaches.
Data analyzed in the study includes: national key affordability indicators, most affordable markets (ranked by lowest 2015 predicted mortgage-to-income ratio with a 30-year fixed-rate mortgage) and least affordable markets (ranked by highest 2015 predicted mortgage-to-income ratio with a 30-year fixed-rate mortgage)
âOver the last 10 years, we have seen marketplace gyrations ranging from bubble to burst to recovery to stabilization, and we are now seeing a market of extremes on the affordability front,â said Jonathan Smoke, chief economist for Realtor.com. âBuyersâespecially first-time home buyersâmight feel more motivated as the overall market continues to improve, and this report provides potential buyers with local insight that is both informative and instructive.â
Smokeâs team also crunched the numbers for different types of mortgages, looking at scenarios with an adjustable-rate mortgage and with a low down-payment mortgage offered through the Federal Housing Administration.
What are the other most affordable markets? Detroit tops the list, and after the Motor City are St. Louis, Cleveland, Atlanta and Pittsburgh.
With a median income of $54,264, Pittsburgh had a 20.1% mortgage to income ratio.
The report also states that while large sections of the US have plenty of affordable homes for sale, in the nationâs priciest markets ordinary buyers cannot afford their first home: âAcross the nation, by the end of 2015, even middle-of-the-road housing costs will come dangerously close to the line dividing affordable from unaffordable. The median household income of $55,533 will just fall short, spending 27.6% of income annually on a median-priced home purchased with a 30-year fixed-rate mortgage; while renters will tip over the line, handing over 29.5% of their income for housing.â
It probably wonât shock anyone that the San Francisco area tops the list of least affordable metro areas, with runners-up in unaffordability being San Diego, Los Angeles, New York City and Miami.
Read Realtor.comâs 2015 Mortgage Affordability Report.