- Realtor.com identifies metros where affordable homes are available in its July Affordability Report
- Scarcity of affordable, available homes accelerated by COVID pandemic
The COVID-19 pandemic didn’t invent the scarcity of affordable single-family homes in this country, it merely accelerated and exacerbated housings’ lack of affordable supply.
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According to realtor.com, the COVID pandemic essentially shut down large parts of the country’s housing industry and also wreaked havoc on the economy. Few, if any, bargain-basement deals have been available to potential buyers during this time of historically low for-sale inventory while nearly record- low interest rates have made the market more challenging than ever.
Danielle Hale, realtor.com’s chief economist said, “This is a problem that was existing before the pandemic and in many ways was accelerated by the pandemic.”
Realtor.com’s July Affordability Report identified three metro markets where affordable single-family homes were, in fact, available. In April, realtor.com was able to identify six metros where people could afford to buy a home without breaking the bank to pay for it.
Baton Rouge LA was at the top of the list for having both available AND affordable homes. Baton Rouge’s median home price in July was $265,000 and the metro had at least 10 active listings for every 1,000 households.
The second-best metro for available and affordable houses, according to realtor.com’s July Affordability Report, was Atlanta and its suburbs such as Sandy Springs. The median price for a home in the metro of Atlanta was $350,000. Jacksonville FL ranked third in both availability and affordability with a median price tag of $319,000.
All three of these Southeastern metros have two things going for them that enable both availability and affordability: ample space for building new housing to meet demand and looser building regulations that lower building costs.
On the whole, it’s more difficult to find a home that’s affordable today than it was three months ago as for-sale inventory is now -59% below its long-time historical average of 17 listings per 1,000 people. This historical average dates back to the year 2000.
You guessed it…the five metros that are least affordable and accessible are San Jose/Sunnyvale, San Francisco/Oakland, San Diego/Carlsbad, Stockton/Lodi and Fresno, all in California.
Thanks to realtor.com.