A record 8.2 percent of homes in the United States are now worth $ 1 million or more, up from 4.8 percent just two years ago, according to a March report by Redfin. New research shows that some large cities still have affordable homes, but they are becoming increasingly scarce.
In a recent analysis of the most populous and expensive cities in the United States, the real estate analysis firm Point2 I found five of them: San Francisco; Irvine, California; Oakland, California; Gilbert, Arizona; and Henderson, Nev. – had zero starting homes, or those listed for under $ 150,000, available in the market.
“The basic housing need is so critical and essential,” said Doug Ressler, business intelligence manager at Yardi Matrix, a division of Point2’s parent company, Yardi Systems. “Right now, the thinking is that the affordability of homes is falling.”
According to the Point2 study, the share of affordable homes on the market was more than 10 percent in just two US cities: Mesa, Arizona, and St. Petersburg, Florida. The percentage of affordable homes has dropped significantly from there. In Dallas and Tampa, Florida, the next two cities on the list, the share of affordable homes was just over 5%.
For its analysis, Point2 looked at the 50 most populous cities in the United States with the highest average home prices, then ranked them based on the ad share of less than $ 150,000 in the last week of March across four websites: Point2, Zillow, Redfin and Realtor.com.
The results were often hyper-local, with neighboring cities having very different markets. For example, in the satellite city of Mesa, Phoenix, the share of affordable homes was nearly 15%; in nearby Gilbert the altitude was zero. Honolulu ranked fifth in the top 10 cities with the highest share of affordable homes, with just under 5%, even though it had a relatively high average price of $ 870,000.
The disparities are often the result of public policies and local ordinances aimed at increasing affordable housing, Ressler said, pointing to states as California and Connecticut, which revised zoning laws to give communities more flexibility increase the population density.
“People have to find the right fit, the right size shoe,” he said. “Not all policies will fit everywhere.”