The Midwest has the most affordable housing. California has the least.
By Les Christie, CNNMoney.com staff writer
July 1 2007: 2:37 PM EDT
NEW YORK (CNNMoney.com) -- The housing slump has its benefits; affordability improved in many metro areas across the nation during the first three months of this year.
According to a report from Wells Fargo Bank and the National Association of Home Builders (NAHB), about 44 percent of all homes sold in the United States during the first three months of the year were affordable to families earning the median household income for the area they lived in.
Los Angeles: The nation's least affordable housing market.
NAHB President Brian Catalde, said, "This is up from 41.6 percent of homes sold in the final quarter of 2006, and is likely the result of lower house prices as well as the very favorable financing conditions that existed at the beginning of this year."
The Indianapolis area, where the median home cost $116,000, was the most affordable major U.S. market for the period, but joining it at number one this time was the Youngstown, Ohio metro area ($78,000). In both places, the index judged affordable 89.0 percent of the homes sold.
A smaller market area, Kokomo, Indiana ($93,000), led all cities; 93.5 percent of all homes sold there could be bought by median income households. Also highly affordable were Lansing, Michigan ($100,000, 91.1 percent) and Lima, Ohio ($78,000, 90.4 percent).
The top 13 markets were all located in the Midwest region. Cumberland, Maryland ($81,000, 86.8 percent), representing the South, was the highest ranked city in the rest of the United States. Elmira, New York ($69,000, 86.7 percent) was close behind. The most affordable western city was Pueblo, Colorado ($115,000, 76.3 percent).
California dominated the list of most unaffordable cities with just 3.0 percent of Los Angeles residents able to buy the median home, priced at $525,000. In nearby Santa Ana ($610,000, 4.4 percent) and Salinas ($569,000, 4.6 percent), conditions weren't much better.
The New York metro are, where the median home cost $500,000, was the least affordable place outside California. It recorded an affordability index score of 6.0 percent. Miami ($288,000, 10.0 percent) trailed all other southern cities and Chicago ($248,000, 46.5 percent) brought up the rear in the Midwest.
In addition to earnings and home prices, Wells Fargo and NAHB factor in interest rates in compiling their index, which stayed low through the year's first three months, ranging from an average of 6.14 percent for a 30-year fixed to 6.30, according to Freddie Mac figures.
If the housing slump continues and deepens, which many experts expect, and interest rates stay under 7 percent, housing affordability may improve through the balance of the year.
Housing Opportunity Index: 1st Quarter 2007 by Affordability Rank
Metro Area
HOI 1st Qtr 2007 Share of Homes Affordable for Median Income
2007 Median Family Income
1st Qtr 2007 Median Sales Price
1st Qtr 2007 Affordability Rank National
1st Qtr 2007 Affordability Rank Regional
Kokomo, IN
93.5
$59,700.00
$93,000.00
1
1
Lansing-East Lansing, MI
91.1
$64,000.00
$100,000.00
2
2
Lima, OH
90.4
$51,400.00
$78,000.00
3
3
Saginaw-Saginaw Township North, MI
89.6
$52,300.00
$85,000.00
4
4
Bay City, MI
89.5
$54,400.00
$83,000.00
5
5
Mansfield, OH
89.1
$52,100.00
$75,000.00
6
6
Indianapolis-Carmel, IN
89.0
$63,800.00
$116,000.00
7
7
Springfield, OH
89.0
$52,500.00
$79,000.00
7
7
Youngstown-Warren-Boardman, OH-PA
89.0
$51,400.00
$78,000.00
7
7
Dayton, OH
87.9
$58,700.00
$93,000.00
10
10
Flint, MI
87.9
$57,200.00
$94,000.00
10
10
Battle Creek, MI
87.5
$52,800.00
$79,000.00
12
12
Detroit-Livonia-Dearborn, MI ^^^
87.4
$53,800.00
$94,000.00
13
13
Cumberland, MD-WV
86.8
$46,600.00
$81,000.00
14
1
Monroe, MI
86.8
$68,700.00
$151,000.00
14
14
Elmira, NY
86.7
$51,700.00
$69,000.00
16
1
Canton-Massillon, OH
86.2
$53,000.00
$88,000.00
17
15
Utica-Rome, NY
85.6
$52,400.00
$80,000.00
18
2
Elkhart-Goshen, IN
84.9
$56,500.00
$126,000.00
19
16
Grand Rapids-Wyoming, MI
84.5
$59,100.00
$120,000.00
20
17
Buffalo-Niagara Falls, NY
84.1
$59,300.00
$90,000.00
21
3
Syracuse, NY
83.9
$58,700.00
$90,000.00
22
4
San Angelo, TX
83.6
$49,100.00
$85,000.00
23
2
Binghamton, NY
83.1
$52,800.00
$80,000.00
24
5
Toledo, OH
82.8
$57,600.00
$100,000.00
25
18
Davenport-Moline-Rock Island, IA-IL
82.6
$57,200.00
$93,000.00
26
19
Cleveland-Elyria-Mentor, OH
82.4
$60,700.00
$106,000.00
27
20
Erie, PA
82.4
$53,900.00
$90,000.00
27
6
Sherman-Denison, TX
82.0
$52,700.00
$99,000.00
29
3
Rochester, NY
81.4
$62,000.00
$105,000.00
30
7
Springfield, IL
80.9
$63,700.00
$110,000.00
31
21
Warren-Troy-Farmington Hills, MI ^^^
80.9
$76,400.00
$155,000.00
31
21
Peoria, IL
80.6
$61,800.00
$107,000.00
33
23
Rockford, IL
79.9
$58,600.00
$113,000.00
34
24
Akron, OH
79.8
$60,300.00
$108,000.00
35
25
Elizabethtown, KY
78.2
$50,600.00
$126,000.00
36
4
Cincinnati-Middletown, OH-KY-IN
78.1
$63,600.00
$130,000.00
37
26
Chattanooga, TN-GA
77.4
$53,400.00
$124,000.00
38
5
Oklahoma City, OK
77.3
$53,600.00
$115,000.00
39
6
Sandusky, OH
77.3
$55,400.00
$115,000.00
39
27
St. Louis, MO-IL
77.1
$63,300.00
$128,000.00
41
28
Harrisburg-Carlisle, PA
77.0
$65,600.00
$137,000.00
42
8
Louisville-Jefferson County, KY-IN
76.3
$57,500.00
$126,000.00
43
7
Pueblo, CO
76.3
$48,000.00
$115,000.00
43
1
Birmingham-Hoover, AL
75.9
$55,500.00
$119,000.00
45
8
Wichita Falls, TX
75.9
$49,200.00
$96,000.00
45
8
Columbus, OH
75.8
$64,200.00
$134,000.00
47
29
Duluth, MN-WI
75.8
$55,500.00
$120,000.00
47
29
Pittsburgh, PA
75.6
$57,900.00
$113,000.00
49
9
Champaign-Urbana, IL
75.4
$60,600.00
$127,000.00
50
31
Reading, PA
74.8
$63,600.00
$136,000.00
51
10
Winston-Salem, NC
74.8
$56,100.00
$132,000.00
51
10
Knoxville, TN
74.6
$54,800.00
$132,000.00
53
11
Columbia, SC
74.3
$58,200.00
$138,000.00
54
12
Fayetteville, NC
73.5
$47,500.00
$114,000.00
55
13
Wichita, KS
73.0
$56,600.00
$129,000.00
56
32
Tulsa, OK
72.3
$52,500.00
$122,000.00
57
14
Lancaster, PA
71.5
$64,000.00
$163,000.00
58
11
Ann Arbor, MI
71.2
$78,300.00
$190,000.00
59
33
Greensboro-High Point, NC
71.1
$53,600.00
$139,000.00
60
15
Greenville-Mauldin-Easley, SC
70.3
$52,900.00
$144,000.00
61
16
Glens Falls, NY
70.2
$55,700.00
$129,000.00
62
12
Waco, TX
70.1
$50,400.00
$114,000.00
63
17
Memphis, TN-MS-AR
69.6
$53,200.00
$130,000.00
64
18
Atlanta-Sandy Springs-Marietta, GA
69.3
$67,100.00
$176,000.00
65
19
Ithaca, NY
68.9
$65,400.00
$138,000.00
66
13
Colorado Springs, CO
68.5
$65,500.00
$192,000.00
67
2
Albany-Schenectady-Troy, NY
67.6
$66,300.00
$159,000.00
68
14
Milwaukee-Waukesha-West Allis, WI
67.2
$65,600.00
$161,000.00
69
34
Fort Worth-Arlington, TX ^^^
66.6
$60,500.00
$151,000.00
70
20
Tallahassee, FL
66.4
$58,200.00
$159,000.00
71
21
Beaumont-Port Arthur, TX
66.3
$50,200.00
$117,000.00
72
22
Pittsfield, MA
66.3
$62,800.00
$164,000.00
72
15
Salisbury, MD
65.6
$58,500.00
$171,000.00
74
23
Victoria, TX
65.6
$48,800.00
$119,000.00
74
23
Denver-Aurora, CO
64.5
$71,400.00
$212,000.00
76
3
Pensacola-Ferry Pass-Brent, FL
64.5
$52,500.00
$148,000.00
76
25
Charlotte-Gastonia-Concord, NC-SC
63.8
$60,200.00
$168,000.00
78
26
Amarillo, TX
63.2
$49,400.00
$119,000.00
79
27
Greeley, CO
63.2
$59,800.00
$181,000.00
79
4
Wilmington, DE-MD-NJ ^^^
63.1
$73,900.00
$226,000.00
81
16
Minneapolis-St. Paul-Bloomington, MN-WI
62.9
$77,600.00
$230,000.00
82
35
Springfield, MA
62.6
$61,800.00
$178,000.00
83
17
Hartford-West Hartford-East Hartford, CT
61.8
$80,300.00
$225,000.00
84
18
Tyler, TX
61.7
$50,900.00
$142,000.00
85
28
Durham, NC
61.6
$60,100.00
$175,000.00
86
29
Fort Collins-Loveland, CO
61.5
$68,200.00
$215,000.00
87
5
Raleigh-Cary, NC
61.5
$69,800.00
$207,000.00
87
30
Spokane, WA
61.2
$57,600.00
$168,000.00
89
6
Gainesville, GA
60.3
$56,500.00
$169,000.00
90
31
Pocatello, ID
59.7
$49,700.00
$153,000.00
91
7
Roanoke, VA
58.2
$56,300.00
$184,000.00
92
32
Dallas-Plano-Irving, TX ^^^
57.4
$63,200.00
$178,000.00
93
33
Jacksonville, FL
57.3
$59,700.00
$184,000.00
94
34
Trenton-Ewing, NJ
57.3
$84,900.00
$229,000.00
94
19
Great Falls, MT
57.0
$50,200.00
$151,000.00
96
8
Austin-Round Rock, TX
56.8
$69,300.00
$200,000.00
97
35
Wheeling, WV-OH
56.8
$47,100.00
$135,000.00
97
35
Richmond, VA
56.5
$68,700.00
$223,000.00
99
37
Camden, NJ ^^^
55.9
$76,900.00
$212,000.00
100
20
Madison, WI
55.2
$73,700.00
$218,000.00
101
36
New Haven-Milford, CT
55.2
$72,600.00
$219,000.00
101
21
Worcester, MA
54.7
$72,800.00
$235,000.00
103
22
Ogden-Clearfield, UT
53.9
$62,600.00
$218,000.00
104
9
Boulder, CO
53.7
$82,500.00
$288,000.00
105
10
Lake County-Kenosha County, IL-WI ^^^
53.5
$80,900.00
$248,000.00
106
37
Gainesville, FL
53.2
$54,200.00
$172,000.00
107
38
Norwich-New London, CT
53.2
$74,600.00
$240,000.00
107
23
Burlington-South Burlington, VT
52.7
$70,600.00
$218,000.00
109
24
Vineland-Millville-Bridgeton, NJ
52.6
$55,800.00
$155,000.00
110
25
Philadelphia, PA ^^^
52.5
$69,200.00
$220,000.00
111
26
Baltimore-Towson, MD
51.7
$75,800.00
$252,000.00
112
39
College Station-Bryan, TX
51.7
$51,000.00
$153,000.00
112
39
San Antonio, TX
50.9
$53,700.00
$160,000.00
114
41
Houston-Sugar Land-Baytown, TX
50.8
$57,300.00
$170,000.00
115
42
Rockingham County-Strafford County, NH ^^^
50.7
$75,700.00
$246,000.00
116
27
Allentown-Bethlehem-Easton, PA-NJ
49.6
$65,800.00
$213,000.00
117
28
Manchester-Nashua, NH
49.5
$77,300.00
$235,000.00
118
29
Virginia Beach-Norfolk-Newport News, VA-NC
49.5
$64,100.00
$223,000.00
118
43
Dover, DE
48.6
$58,700.00
$215,000.00
120
44
Corvallis, OR
48.5
$67,400.00
$240,000.00
121
11
Fort Walton Beach, FL
48.3
$62,600.00
$225,000.00
122
45
Midland, TX
47.8
$54,800.00
$164,000.00
123
46
Chicago-Naperville-Joliet, IL ^^^
46.5
$69,700.00
$248,000.00
124
38
Corpus Christi, TX
46.0
$45,800.00
$143,000.00
125
47
Palm Bay-Melbourne-Titusville, FL
46.0
$55,600.00
$197,000.00
125
47
Charleston-North Charleston, SC
45.5
$55,400.00
$210,000.00
127
49
Albuquerque, NM MSA
45.4
$55,900.00
$210,000.00
128
12
Asheville, NC
44.8
$50,800.00
$199,000.00
129
50
Fairbanks, AK
44.1
$69,700.00
$233,000.00
130
13
Hagerstown-Martinsburg, MD-WV
43.1
$57,900.00
$220,000.00
131
51
Yuma, AZ
42.8
$40,700.00
$160,000.00
132
14
Ocala, FL
42.1
$42,700.00
$165,000.00
133
52
Salem, OR
42.1
$54,200.00
$200,000.00
133
15
Lakeland, FL
41.4
$46,900.00
$180,000.00
135
53
Tampa-St. Petersburg-Clearwater, FL
41.4
$53,900.00
$200,000.00
135
53
Peabody, MA ^^^
40.5
$77,200.00
$300,000.00
137
30
Bethesda-Gaithersburg-Frederick,MD ^^^
40.2
$101,100.00
$400,000.00
138
55
Cambridge-Newton-Framingham, MA ^^^
38.5
$88,900.00
$360,000.00
139
31
Anchorage, AK
38.0
$74,800.00
$277,000.00
140
16
Deltona-Daytona Beach-Ormond Beach, FL
38.0
$49,900.00
$195,000.00
140
56
Washington-Arlington-Alexandria, DC-VA-MD-WV ^^^
37.7
$92,600.00
$370,000.00
142
57
Panama City-Lynn Haven, FL
36.5
$51,300.00
$221,000.00
143
58
Kingston, NY
36.2
$63,500.00
$232,000.00
144
32
Brownsville-Harlingen, TX
35.9
$30,000.00
$111,000.00
145
59
Chico, CA
35.4
$52,000.00
$236,000.00
146
17
Bellingham, WA
35.3
$58,200.00
$245,000.00
147
18
Olympia, WA
34.5
$64,300.00
$245,000.00
148
19
Sebastian-Vero Beach, FL MSA
34.0
$54,100.00
$225,000.00
149
60
Tucson, AZ
33.4
$52,400.00
$217,000.00
150
20
Punta Gorda, FL
33.1
$49,800.00
$213,000.00
151
61
Providence-New Bedford-Fall River, RI-MA
32.9
$68,300.00
$255,000.00
152
33
Atlantic City, NJ
32.8
$64,300.00
$260,000.00
153
34
Sarasota-Bradenton-Venice, FL
32.8
$57,500.00
$252,000.00
153
62
Poughkeepsie-Newburgh-Middletown, NY
32.6
$76,400.00
$280,000.00
155
35
Bridgeport-Stamford-Norwalk, CT
32.3
$93,400.00
$410,000.00
156
36
Salt Lake City, UT
31.6
$60,100.00
$269,000.00
157
21
Boise City-Nampa, ID
30.6
$58,500.00
$248,000.00
158
22
Phoenix-Mesa-Scottsdale, AZ
30.0
$59,100.00
$258,000.00
159
23
Eugene-Springfield, OR
29.6
$52,200.00
$220,000.00
160
24
Edison, NJ ^^^
29.4
$85,600.00
$340,000.00
161
37
Provo-Orem, UT
29.3
$55,100.00
$265,000.00
162
25
Portland-Vancouver-Beaverton, OR-WA
29.0
$63,800.00
$270,000.00
163
26
Bremerton-Silverdale, WA
28.8
$65,700.00
$280,000.00
164
27
Mount Vernon-Anacortes, WA
28.8
$57,900.00
$250,000.00
164
27
West Palm Beach-Boca Raton-Boynton Beach, FL ^^^
28.8
$61,200.00
$275,000.00
164
63
Boston-Quincy, MA ^^^
28.3
$76,900.00
$347,000.00
167
38
Prescott, AZ
28.1
$49,100.00
$243,000.00
168
29
Fort Lauderdale-Pompano Beach-Deerfield Beach, FL ^^^
27.7
$58,400.00
$270,000.00
169
64
El Paso, TX
27.6
$36,500.00
$140,000.00
170
65
Redding, CA
27.1
$52,700.00
$250,000.00
171
30
Port St. Lucie, FL
26.4
$52,800.00
$232,000.00
172
66
Orlando-Kissimmee, FL
26.1
$54,900.00
$248,000.00
173
67
Tacoma, WA ^^^
25.9
$61,500.00
$265,000.00
174
31
Cape Coral-Fort Myers, FL
25.8
$54,700.00
$250,000.00
175
68
Medford, OR
25.0
$52,700.00
$250,000.00
176
32
Laredo, TX
24.1
$34,000.00
$147,000.00
177
69
Flagstaff, AZ
23.2
$53,500.00
$320,000.00
178
33
Seattle-Bellevue-Everett, WA ^^^
22.6
$75,600.00
$370,000.00
179
34
Honolulu, HI
21.8
$73,500.00
$475,000.00
180
35
Newark-Union, NJ-PA ^^^
21.2
$83,200.00
$375,000.00
181
39
Reno-Sparks, NV
21.2
$64,000.00
$303,000.00
181
36
Carson City, NV
20.0
$58,800.00
$270,000.00
183
37
Santa Fe, NM
19.5
$57,000.00
$329,000.00
184
38
St. George, UT
19.3
$49,600.00
$287,000.00
185
39
Las Vegas-Paradise, NV
18.9
$60,100.00
$297,000.00
186
40
Barnstable Town, MA
18.3
$70,400.00
$347,000.00
187
40
Hanford-Corcoran, CA
18.2
$46,800.00
$260,000.00
188
41
Naples-Marco Island, FL
17.9
$63,900.00
$365,000.00
189
70
Bakersfield, CA
17.1
$47,800.00
$260,000.00
190
42
Yuba City, CA
16.2
$51,700.00
$272,000.00
191
43
Vallejo-Fairfield, CA
15.3
$75,400.00
$420,000.00
192
44
Madera, CA
15.2
$51,000.00
$295,000.00
193
45
Ocean City, NJ
15.0
$62,900.00
$435,000.00
194
41
Bend, OR
14.7
$58,700.00
$310,000.00
195
46
Visalia-Porterville, CA
14.4
$43,700.00
$240,000.00
196
47
Santa Rosa-Petaluma, CA
14.1
$74,500.00
$495,000.00
197
48
San Jose-Sunnyvale-Santa Clara, CA
13.6
$94,500.00
$646,000.00
198
49
Sacramento--Arden-Arcade--Roseville, CA
13.4
$67,200.00
$363,000.00
199
50
Fresno, CA
12.7
$48,900.00
$278,000.00
200
51
Nassau-Suffolk, NY ^^^
12.1
$93,800.00
$435,000.00
201
42
Oakland-Fremont-Hayward, CA ^^^
11.4
$83,000.00
$533,000.00
202
52
Oxnard-Thousand Oaks-Ventura, CA
10.5
$79,500.00
$545,000.00
203
53
Miami-Miami Beach-Kendall, FL ^^^
10.0
$45,200.00
$288,000.00
204
71
Riverside-San Bernardino-Ontario, CA
9.7
$59,200.00
$380,000.00
205
54
Stockton, CA
9.7
$60,300.00
$390,000.00
205
54
San Diego-Carlsbad-San Marcos, CA
9.4
$69,400.00
$460,000.00
207
56
El Centro, CA
8.4
$42,000.00
$254,000.00
208
57
Santa Cruz-Watsonville, CA
8.2
$81,300.00
$655,000.00
209
58
Modesto, CA
7.0
$56,000.00
$341,000.00
210
59
San Luis Obispo-Paso Robles, CA
6.9
$64,200.00
$504,000.00
211
60
Napa, CA
6.7
$75,800.00
$565,000.00
212
61
San Francisco-San mateo-Redwood City, CA ^^^
6.7
$86,500.00
$748,000.00
212
61
New York-White Plains-Wayne, NY-NJ ^^^
6.0
$59,500.00
$500,000.00
214
43
Santa Barbara-Santa Maria-Goleta, CA
6.0
$67,100.00
$553,000.00
214
63
Merced, CA
5.6
$46,800.00
$311,000.00
216
64
Salinas, CA
4.6
$63,400.00
$569,000.00
217
65
Santa Ana-Anaheim-Irvine, CA ^^^
4.4
$78,700.00
$610,000.00
218
66
Los Angeles-Long Beach-Glendale, CA ^^^
3.0
$61,700.00
$525,000.00
219
67
^^^ Indicate Metropolitan Divisions. All others are Metropolitan Statistical Areas.
