Housing

This American City Is 'Impossibly Unaffordable'

Ferry to San Jose Island in Texas
Edgar Lee Espe / Shutterstock.com

24/7 Insights

  • The Demographic International Housing Affordability Report indicates that some U.S. cities are “impossibly unaffordable.”

The Demographia International Housing Affordability report examines home prices worldwide. Its metrics indicate that some are “impossibly unaffordable.” Several U.S. cities make the list, led by San Jose, which is also on several other lists of places where housing prices are highest in America.

The median price-to-income ratio is the metric to pick “impossibly unaffordable” cities, which the authors call “median multiple.” Researchers looked at every developed country’s market worldwide. The US had five of the top 10, followed by Australia, which had three.

The United States also had several of the most affordable cities. The authors wrote, “ In the US, the most affordable market was Pittsburgh (PA), with a median multiple of 3.1, followed closely by Rochester (NY) and St. Louis (MO-IL) at 3.4, with Cleveland (OH) at 3.5.”

At the high end, San Jose’s multiple was 11.9. It was followed by Los Angeles at 10.9, San Francisco at 9.7, and San Diego at 9.1. Honolulu, Miami, and New York were also near the top of the list. (This city has the most expensive homes.)

The findings are not surprising. The National Association of Realtors releases a quarterly list of median sales prices by city. Last quarter, San Jose topped the list at $1.84 million. It was followed by Anaheim (part of LA) at $1.35, San Francisco at $1.3, and Honolulu at $1.09. These cities are “probably affordable” for only the rich.

Is Your Money Earning the Best Possible Rate? (Sponsor)

Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.

However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.

There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.