Here are the Most and Least Affordable Housing Markets

In 75 of the largest 100 cities, homeowners spend more than 30% of their income on their dwelling, a study says.

Home prices have been falling in the second half of the year, so is it time for you to start looking for a home of their own?

Not if you judge by a report from RealtyHop, a home price information service. Its Housing Affordability Index shows that in 75 of the largest 100 cities in the country, homeowners spend more than 30% of their income to pay for their abode.

That’s a common definition of unaffordable homes. The index uses average household income numbers and median list prices for homes.

The index assumes a 30-year fixed-rate mortgage with a 5.5% interest rate. Most buyers would actually pay more than that, meaning more unaffordable homes. The 30-year fixed mortgage rate averaged 6.42% in the week ended Dec. 29.

“As interest rates continue to climb, and housing sentiment decreases, many potential homebuyers continue to wonder whether they’ll ever be able to purchase a home,” the report says.

But it offers good news, too. In December, for the second straight month, 57% of cities became more affordable for homebuyers. So more cities might soon become affordable by the 30% rule of thumb.

The Least Affordable Housing Markets

Here are the five least affordable housing markets in December, starting with the very least.

Miami: Share of average household income ($44,581) that must be paid for home ownership: 85.67%. The city continued to grow more expensive in December, as the median asking price increased 0.5% from November to $598,000, the report said.

Los Angeles: Share of average household income ($69,695) that must be paid for home ownership: 83.06%. The situation here is improving. The median home purchase price fell by $1,000 to $949,000.

New York City: Share of average household income ($68,129) that must be paid for home ownership: 78.97%. The trend is positive here too. The share decreased from 84.61% during the summer.

Newark, N.J.: Share of average household income ($38,854) that must be paid for home ownership: 75%. Good news here too: the median housing price dropped 1.97% in December to $372,500.

Hialeah, Fla: Share of average household income ($40,036) that must be paid for home ownership: 71.76%. Things are getting worse in a hurry here. The median home price soared 2.43% to $449,000.

The Most Affordable Housing Markets

Here are the five most affordable housing markets, starting with the very most.

Wichita, Kan.: Share of average household income ($59,861) that must be paid for home ownership: 16.36%. Wichita became even more affordable in December, as the median asking price for a home decreased from $149,900 in November to $145,000.

Fort Wayne, Ind.: Share of average household income ($57,533) that must be paid for home ownership: 18.3%. Here too it’s getting more affordable, with median home prices dropping 2.88% in December from November to $165,000.

Detroit: Share of average household income ($34,932) that must be paid for home ownership: 19.03%. Things are improving here too, with home prices falling 4.76% to $90,000.

Cleveland: Share of average household income ($35,305) that must be paid for home ownership: 22.96%. The trend is positive here as well. Home prices shed 3.36% in December from November to $115,000.

Lubbock, Texas: Share of average household income ($57,685) that must be paid for home ownership: 23.26%. Home prices here were unchanged at $185,000.