Philadelphia's homebuying power has dropped drastically
Buying a house is far less accessible today than it was for previous generations. Homebuying power in Philadelphia has decreased nearly 65% from 1970 to 2022, according to a new RealtyHop study. The study compared annual income to average house price in 1970, which is the ratio of annual household values to the current average house prices. This has led to a 2.83 times more unaffordable for families in Philadelphia since 1970, while home values in Philadelphia have risen from $10,600 to over $215,000 in 2022. The largest affordability gaps are located in California, with all five of the least affordable cities in California. Meanwhile, the Midwest remains the most affordable region for homebuyers. Detroit is the only city where buying is easier today than it was 50 years ago.
Publié : il y a 10 mois par Brianna Crane,Isaac Avilucea dans Tech
Share on email (opens in new window)
Share on email (opens in new window)
Share on nextdoor (opens in new window)
Share on nextdoor (opens in new window)
Share on linkedin (opens in new window)
Share on linkedin (opens in new window)
Share on twitter (opens in new window)
Share on twitter (opens in new window)
Share on facebook (opens in new window)
Share on facebook (opens in new window)
Homebuying power in the Philadelphia metro decreased nearly 65% from 1970 to 2022, per Axios' Rahul Mukherjee's analysis of a new RealtyHop study. Why it matters: Buying a house is far less accessible today than it was for previous generations.
How it works: Homebuying power is the ratio of annual income versus average house price in 1970 (when boomers started buying starter homes) compared to 2022.
By the numbers: Housing has become 2.83 times more unaffordable for families in Philadelphia since 1970, per the report.
• Over that same time, home values in Philadelphia skyrocketed from $10,600 to more than $215,000 in 2022.
• The median family income in 1970 was about $9,300 compared to $67,168 in 2022, per the report.
The big picture: The largest affordability gaps are along the West Coast, with all five of the least affordable cities in California.
• Meanwhile, the Midwest has remained the most affordable region for homebuyers. Of the 117 cities included in the study, Detroit is the only one where buying is easier today than it was 50 years ago.
Reality check: Mortgage rates were in the double digits in the 1970s and 80s. Today they're hovering around 7%.