And The Most Affordable Housing Market Is…

This is good news for all you home consumers.

Falling mortgage interest rates plus falling home prices equals greater housing affordability.

According to a recent CNNMoney article, the most affordable major housing market was Indianapolis:

Indianapolis was, once again, the most affordable major housing market in the United States. The median home sold there, already low at $122,000 during the previous quarter, fell to $113,000 during the last three months of the year. With a median income of $65,000, 89 percent of the homes sold were affordable to the average household.

The LEAST affordable housing market is Los Angeles, California where the media house price is $525,000 while the median income is only $56,200. OUCH!JLP
Most Affordable Housing Markets [CNNMoney]

Comments

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  1. TedSez says:

    Ouch is right. And if someone can actually find a $525,000 house in a half-decent L.A. neighborhood, I hope they’ll tell me about it.

  2. Amy Alkon says:

    Think Prefab. Check out Inhabitat.com.

    Of course, the only place you’ll be able to afford a lot for it is probably Compton.

  3. tadowguy says:

    Let’s see… Move to Indiana from Colorado? No, sorry, no sale.

  4. Two things:
    First, South Florida isn’t on here? I figured the housing boom down there would have inflated prices to get Miami pretty near the top.
    Second, from the article:

    affordability improved – albeit only marginally

    I thought the downturn was, at this point, only really effecting new homes and developments, not existing homes.
    So if you want the poorly made cookie cutter of your dreams, now isn’t a bad time. Me, I’m waiting a few more years.

  5. katana- says:

    coincidently, doesn’t Indy have a really high foreclosure rate also?

  6. vannsant says:

    I don’t know about you, but I dont consume houses, I buy them and live in them.

  7. The Walking Eye says:

    @katana-:

    Yeah, there’s a lot of those super shady loans where you pay only interest for a few years and then your payment doubles or more being tossed about here. There’s another type that’s similar, but I can’t remember what the terms are where payments are low for awhile and then they go up.

  8. west virginia, where you can buy your own home and be able to drive it away!!

  9. mrmysterious says:

    My wife and I just built (and subsequently purchased) our first house….in the Indianapolis area.

  10. deltasleep says:

    I have no idea how anybody makes it in a place with housing as high as LA, I really don’t. A lot of cities that coastal dwellers consider “b-list” cities are full of people who actually OWN the home they live in. I hate to have to decide where to buy a house: in an amazing city where housing is so high I’ll have a 1000 year mortgage to have an apartment, or where things are only sort of nice, and I can have a 15 year mortgage. On second thought, that may not be so much of a decision.

  11. rekoil says:

    I moved from the DC suburbs to Midtown Atlanta in 2004, and have yet to regret it. I traded a suburban townhome for a comparable townhome condo a mile from downtown, and a 45-minute highway commute for a half-hour MARTA-plus-shoeleather one. And actually paid *less* for the house here than what I sold the one in DC for. Sad part is, given today’s prices I probably couldn’t afford to move back even if I wanted to.

  12. nighthwk1 says:

    There’s a reason Indy is the cheapest place to live. I think it has something to do with the exodus of college graduates (myself included) leaving Indianapolis to find decent jobs. The city is stagnant. Perpetually “five years away” from becoming some kind of midwestern mecca of culture. The city government seems to believe that basketball, football, and GenCon can sustain an economy.

  13. ElizabethD says:

    I was in Indy for a conference two years ago, in late April. Over a week-long period, the weather went from high 80s and humid, to drizzling and cold, to tornados, and then to a blizzard at the end of the week. And I thought New England weather was freaky! Other than that, the city seemed nice and had some cultural stuff going on.

    But… I’ll always be a coastal gal myself.

  14. katana. says:

    @Boilermaker78:

    I think you are talking about an ARM – adjustable rate mortgage

  15. flamaest says:

    Three words:

    Texas and Arizona.


    Brand New, modern 6000 sq ft homes for 280k.

    F.

  16. Nemesis_Enforcer says:

    Deltasleep- Its pretty simple to make it out here in LA. Most houses have between 4-8 ppl living in them. The house I live in has 6 adults in it..and we barely pay the mortgage and utilities. It is so expensive out here you have to have roommates unless you make over 100k a year. I work in the mortgage industry and I can tell you most homes have 3 or more ppl on the Title in order to qualify for the loan. It sucks but renting isnt any better. A “ok” 1 bdrm out here is easily 1k a month.