Anthony Djon, founder of Anthony Djon Luxury Real Estate, highlighted Detroit’s affordability, stating that it remains one of the last major markets where median-income buyers have a real shot at homeownership despite rising prices. However, demand is increasing rapidly, particularly in lower price points, as first-time buyers are moving quickly to take advantage of the narrowing window of affordability.
The report identifies that in cities like Los Angeles, San Jose, San Diego, New York, and Boston, median-income earners face significant challenges in affording homeownership, with some needing to spend over 60% of their income on housing costs. On the other hand, cities like Cleveland, Indianapolis, Birmingham, Baltimore, and Buffalo are closer to the 30% affordability threshold.
Realtor.com’s chief economist, Danielle Hale, noted that while earnings have increased, homebuying costs have risen at a faster rate, making affordability a challenge in many housing markets. Hale emphasized the need for significant changes in housing supply or interest rates to make homeownership more accessible in large metros.
Harvard University’s Joint Center for Housing Studies (JCHS) also highlighted the housing affordability issue, revealing data that shows a significant decrease in the number of metro areas with a home-price-to-income ratio below 3. Additionally, the report indicated a rise in the number of cost-burdened homeowner households between 2019 and 2023.