Most affordable cities for middle-class homebuyers

By Real EstateFOXBusiness

Is home ownership still part of the American dream?

National Association of Home Builders CEO Jerry Howard on the state of the housing market.

As affordability remains a concern in the housing market, recent data showed home prices rose at a slower rate in February – at 3 percent, down from 3.5 percent the month prior – potentially signaling good news for prospective buyers.

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The median home price in the U.S. recently hit a record high, exceeding $300,000, but new research shows that buying a home in major U.S. cities should be doable for the majority of middle-class Americans.

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Online lending marketplace LendingTree analyzed housing markets where middle-class Americans have the highest affordability prospects, finding that – overall – most people earning median income can afford the median-priced home in their area.

One exception, however, was California, where the entire middle class faced some challenges. Los Angeles, San Francisco and San Jose were the cities were lower- and middle-middle class earners would have the most difficulty.

Here’s a look at the top markets for middle-middle class families:

Houston

The median home price in Houston is $166,500, while the average middle-class income is $62,922.

A typical middle-class family could afford to pay about $1,468 per month for a home, though researchers found that they would only need to pay about $683 per month in this Texas city.

Houston was also one of the top most affordable cities for lower-middle-class families.

Dallas

Another Texas metro took the second spot on the list. The average middle-middle class person in Dallas earns about $63,870. Meanwhile, the median home price is about $174,500, which means after monthly payments of about $716 – a family has an extra $775 left over that they could have afforded to spend on a home.

Minneapolis

The median home price in Minneapolis is about $230,700 – a bit higher than the other cities listed, but middle-class residents also have a higher median salary of $73,735.

That means the average family could afford monthly home payments of $1,720 – however, they would only likely need to pay about $946.

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For lower-middle class families, the top housing markets were Houston, Pittsburgh and Buffalo, New York.

For upper-middle class families, they were Washington, D.C., Minneapolis and Hartford, Connecticut.