San Francisco, which has been the nation’s least affordable major housing market for nearly five years, was supplanted by Los Angeles in the third quarter of 2017, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI).
Nationwide, 58.3 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $68,000. This is down from the 59.4 percent of homes sold that were affordable to median-income earners in the second quarter.
The national median home price rose to $260,000 in the third quarter from $256,000 in the second quarter of 2017. Meanwhile, average mortgage rates inched up 2 basis points in the third quarter to 4.1 percent from 4.08 percent in the second quarter.
For the fourth consecutive quarter, Youngstown-Warren-Boardman, Ohio-Pa., was rated the nation’s most affordable major housing market. There, 90.1 percent of all new and existing homes sold in the third quarter were affordable to families earning the area’s median income of $54,600. Meanwhile, Wheeling, W.Va.-Ohio was rated the nation’s most affordable smaller market, with 94.7 percent of homes sold in the third quarter being affordable to families earning the median income of $56,100.
Los-Angeles-Long-Beach-Glendale, Calif. assumed the mantle as the nation’s least affordable major housing market. There, just 9.1 percent of the homes sold during the third quarter were affordable to families earning the area’s median income of $64,300.
All five least affordable small housing markets were also in the Golden State. At the very bottom of the affordability chart was Salinas, where 11.3 percent of all new and existing homes sold were affordable to families earning the area’s median income of $63,100.
Visit nahb.org/hoi for tables, historic data and details.