NYC ranks 3rd among the least affordable housing markets

Miami, Los Angeles, and New York City top the list of the most unaffordable housing markets in the country, according to RealtyHop’s monthly index, which compares home prices to the median annual income of U.S. households.

New York City went down one spot – from second place to third in July. The report found that the median price for a home in this city dropped to $949,000 in the past 30 days. Meanwhile, the median annual income of the NYC household stayed at $68,129, which means that families must put 84.6 percent of their income towards homeownership.

Despite the slight decrease in the asking price, New York City’s housing market still remains one of the most unaffordable. The low affordability comes from high mortgage rates, which are growing faster than people's incomes. This month, RealtyHop updated the interest rates from 4.5 percent to 5.5 percent to more accurately reflect changes in the housing market. 

Miami remained the least affordable city for potential homeowners. The median asking price for a home in this area went down slightly to $600,000, but residents of this city still have to allocate the largest percentage of their income towards monthly mortgage payments and property taxes. The average household in Miami earns $44,581, which means they have to spend almost 86 percent of their annual income to afford to own a home. 

Los Angeles followed Miami and ranked second among the least affordable housing markets. The average family in this city has to set aside 84.8 percent of their annual income to buy a house. 

To calculate the monthly affordability index, RealtyHop used over 300,000 property listings and multiple statistics, including current interest rates, monthly mortgage expenses, projected median household income, and local property taxes. 

Resources:

“RealtyHop Housing Affordability Index: July 2022,” (RealtyHop, 2022)

“Good news: NYC now only the 3rd least-affordable U.S. housing market,” by Katherine Kallergis (The Real Deal, 2022)