Affordable metros offer relief amid rising mortgage rates

Home affordability remains a critical concern for many Americans, especially as mortgage rates continue to rise. However, some cities still offer opportunities to own a home without overextending financially.

Realtor.com® conducted an evaluation of major metropolitan areas across the United States and identified five cities where less than 30% of households can afford a home. These cities include Los Angeles, Oxnard, San Diego, and San Jose in California, along with New York City, marking them as the least affordable in the nation.

Conversely, there are five cities where nearly 60% of households have the financial capacity to purchase a home. These more affordable locations are Pittsburgh, Akron in Ohio, Baltimore, Detroit, and St. Louis. In these cities, the income required to buy a home is under $84,000 annually.

In Akron specifically, with a median list price of $228,200, approximately 68.5% of households can afford to purchase a home. The necessary median household income for buying a house there is $55,732. Akron also achieved the ninth position on Realtor.com's Hottest Housing Markets list in October.

Ali Whitley from Re/Max Crossroads in Akron commented on the situation: “It’s affordable in Akron, which makes a really big difference,” adding that "Gen Z are becoming first-time homebuyers here. It’s a great place to buy in a great area for a reasonable price.”

The focus on affordability highlights the potential for savings in these five metropolitan areas:

- **Pittsburgh, PA**: With a median list price of $244,000 and 69.6% of households able to afford such homes. The required median household income is $58,697.

- **Akron, OH**: A median list price stands at $228,200 with 68.5% affordability among households. The needed income is $55,732.

- **Baltimore, MD**: Homes are listed at a median price of $369,995 with 64.1% household affordability requiring an income of $83,948.

- **Detroit, MI**: Here the median list price is $271,200 with 62.6% affordability among households needing an income of $64,888.

- **St. Louis**, MO: Median prices are at $299,450 with 62.4% household affordability requiring an income of $72,101.

These statistics underscore significant differences in housing markets across various regions.