The era of unusually affordable housing has ended, meaning America’s housing affordability has returned to average historical levels.
While this means homes are no longer cheap on a national basis, Redfin’s affordability report suggests the market is still relatively affordable for America’s middle-class families.
According to Redfin’s data, in 68 of the 88 most populous American housing markets, a median-priced home is still affordable to families earning the area’s median household income.
This is especially so for middle-class families living in Detroit, where it takes only $26,690 per year to purchase a home at the area’s median price point.
Detroit’s price point is less than half of the area’s $56,339 median income, making it the nation’s most affordable metro for middle-class families, according to Redfin.
Redfin Chief Economist Daryl Fairweather said people who live in places like Detroit, Pittsburgh and Cleveland tend to earn lower salaries than people in expensive coastal areas, but in many ways the Midwesterners’ quality of life is better.
“Even though they may make less money, it’s easier to purchase a home and build equity while providing for a family,” Fairweather said. “It’s no secret there’s an affordability crisis in high-priced places like the Bay Area, where modest homes can sell for well over $1 million. But in most of the country, homes are still affordable on the typical local inco