Mortgage Payments Are Unaffordable in Half of Major Metros

Jun 09, 2017

The U.S. Department of Housing & Urban Development (HUD) has awarded $47 million in housing counseling grants that are designed to help potential homeowners find residential property and assist current homeowners to keep their residences

The seemingly nonstop rise in home prices has created a new problem: Mortgage payments are unaffordable in half of America's largest markets, according to new data from Zillow.

Nationally, mortgage payments on the median home for sale require 20 percent of the median income. However, the median price of homes for sale is higher than the median home value of all homes in all but three of the nation’s 35 largest metros. Los Angeles homebuyers shell out the highest share of income for their mortgage payments: the typical home for sale would require 46.8 percent of the median income.

"Homes have gotten so expensive in many major cities that even with low mortgage rates, monthly costs for homes that are currently for sale are starting to be unaffordable," said Zillow Chief Economist Svenja Gudell. "Downpayments are a top concern for today's homebuyers, but the reality is that monthly costs are becoming unaffordable as well. Low inventory is pushing sticker prices higher, and when mortgage rates start to rise, monthly payments will be driven further into unaffordable territory."

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Phil Hall

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Jun 09, 2017

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