Now that we’re experiencing a buyers market there are still some areas that are much more affordable than others. The midwest takes the honors of most affordable by a landslide. Overall affordability is down just a little bit as home prices remained about the same while mortgage rates hiked up. Indianapolis takes the crown as most affordable large city.
As one would expect, many areas in California were named least affordable such as Santa Ana/Anaheim and San Diego. Also on the list as least affordable was the New York City metropolitan area.
The most affordable areas were mainly different areas in Michigan, including the Detroit area, and Ohio. The Buffalo/Niagara Falls, New York area also topped the list.
Much of the reason for the affordability of these midwestern markets and the relative expensive nature of the California area is due to migration trends. Those midwestern cities tend to have more sluggish economies coupled with unfavorable climates and many people are relocating.
In contrast, some of the fastest-growing markets tend to be in the west and south. Percentage wise, the fastest growing market in the U.S. was in St. George, Utah. In terms of sheer numbers, Atlanta added more people than any other market. Over the past six years, the Atlanta area has added a total of 669,699 people. Other top growing markets include Dallas, Riverside-San Bernardino, and Phoenix. The biggest loser in terms of population numbers has been Pittsburg, Pennsylvania.
For those buyers that live in the midwest now would be the time to either buy your first home, or invest in a property. It is a buyers market across America but even more so in the midwest. Markets with favorable climates or those near the coast tend to be much more resilient to market changes. For those looking to sell in the midwest, you may want to hunker down and wait this quasi real estate recession out.