Just how affordable is Seattle to those with a median income?
A new report by Redfin took a look at how affordable eighty-eight of the most populous metropolitan areas in the United States are. The analysis ranked each area by percentage of the that metro’s median income needed to afford a local median-priced home. The report is based on the premise that a home is deemed affordable when the mortgage costs associated with it are less than 30% of the total gross income of those owning it.
While New York City is not included in the report, it comes as no surprise that San Francisco is the least affordable metropolitan area in the country. The median income there is $92,714 and, if accepting the premise above, an average family with such an income would have to triple it to afford a home in that area. It is worth noting that California stole the dubious honor of the six top spots in this ranking, with Anaheim, San Jose, Los Angeles, San Diego and Oakland also making the list.
It might not be surprising that Seattle also ranked in the top ten of the least affordable places to reside in. Based on the median home sales price, the minimum suggested income of a typical Seattleite would have to be $105,639 – but in reality, the income was closer to $77,269 (in 2017). Accordingly, an average home buyer would have to increase their median income by over 30%, to afford a median-priced home.
The Redfin report is quite informative, and we urge you to check it out in its entirety here. We pride ourselves on helping our clients make the best homebuying (or selling!) decisions. Let’s talk – we can be reached at email@example.com at 206.910.5000.