Where homes are most (and least) affordable

"State of play: In only11 of the 34 largest U.S. metros do at least 30% of listings fall within reach of middle-income households. In ultra-pricey Miami, Los Angeles and San Diego, fewer than 1 in 50 homes for sale were attainable to the typical household, as of July. The other side: Several Rust Belt and Southern metros saw roughly half of homes affordable relative to local incomes, offering the clearest path to homeownership, researchers say."

"Buyers could afford 1 in 2 listings in Pittsburgh and St. Louis, and roughly 2 in 5 in Baltimore, Detroit, Cincinnati and Birmingham, Alabama. Between the lines: The median U.S. household earns roughly $80,000 a year, per the analysis, which looked at census data. That's $33,000 less than the $113,000 needed to afford a $435,000 median-priced home. Researchers considered homes affordable if annual housing costs (including insurance and property taxes) were below 30% of a household's gross income."

"What we're watching: Builders are leaning into townhomes as a more attainable option for first-time buyers. Townhomes lately made up 18% of single-family homebuilding - nearly double their share from a decade ago, said Robert Dietz, chief economist at the National Association of Home Builders, The bottom line: "Without a meaningful increase in housing supply, particularly in places where people want to live and work, affordability is unlikely to improve even if mortgage rates ease," Bankrate data analyst Alex Gailey tells Axios."

In 11 of the 34 largest U.S. metros at least 30% of listings are affordable to middle‑income households. Miami, Los Angeles and San Diego had fewer than one in 50 homes attainable to the typical household as of July. Several Rust Belt and Southern metros showed much higher affordability; Pittsburgh and St. Louis had about half of listings affordable, while Baltimore, Detroit, Cincinnati and Birmingham reached roughly two in five. The median U.S. household earns about $80,000, roughly $33,000 less than the $113,000 needed to buy a $435,000 median‑priced home. Affordability was measured as annual housing costs below 30% of gross income. Regional gaps reflect new construction and inventory differences. Townhomes now account for about 18% of single‑family homebuilding, nearly double a decade ago. Without meaningful supply increases, affordability is unlikely to improve even if mortgage rates fall.

Read at Axios