As the number of million-dollar homes spikes, properties that are considered to be affordable are scarce.
Share of Million-Dollar Homes Up, Share of Affordable Homes Down
According to a March report from Redfin, a record 8.2% of homes in the US are now worth $1M+, up from only 4.8% just two years ago.
Doug Ressler, manager of business intelligence for Yardi Matrix, a division of Point2’s parent company, Yardi Systems, said, “The basic need for housing is so critical and essential. Right now, the thought is that the affordability of homes is declining.”
Homes Priced Under $150,000 Represent Less than 5% of Currently Listed Homes
Call them what you will…entry level homes, starter homes, cheap homes…homes priced at $150,000 or less are extremely hard to find. Homes priced at $100,000 or less are practically non-existent.
Point 2 recently released an analysis of the share of “affordable” homes in the 50 most expensive and preferred US cities. The results of this analysis indicate that homes priced under $150,000 in 46 of the 50 largest cities account for less than 5% of all homes currently on the market.
Highlights of Main Research Findings
- In 25 large cities, homes under $150,000 account for less than 1% of all homes currently listed for sale.
- Two cities, Mesa AZ and St. Petersburg Fl, have shares of affordable homes between 10% – 15%.
- Henderson NV, Gilbert AZ, San Francisco CA, Irvine CA and Oakland CA had NO homes prices less than $150,000 when Point 2’s data was being collected
Top 10 Cities with Lowest Shares of Listings Under $150,000
City Median Price Share of $150,000 Listings
San Francisco $1,500,000 0.00%
Irvine CA $1,208,000 0.00%
Oakland CA $845,000 0.00%
Gilbert AZ $567,000 0.00%
Henderson NV $480,000 0.00%
Chandler AZ $520,000 0.00%
Scottsdale AZ $802,000 0.19%
Plano TX $475,000 0.24%
Boston MA $710,000 0.25%
San Jose CA $1,400,000 0.28%
Top 10 Cities with Highest Shares of Listings Under $150,000
City Median Price Share of $150,000 Listings
Mesa AZ $442,000 14.82%
St. Petersburg FL $355,000 12.34%
Dallas TX $400,000 5.94%
Tampa FL $360,000 5.43%
Honolulu HI $870,000 4.92%
Bakersfield CA $353,000 4.75%
Santa Ana CA $779,000 4.39%
Fresno CA $365,000 3.72%
Riverside CA $608,000 3.64%
Sacramento CA $480,000 3.44%
Point 2 Comments
“The rise in million-dollar homes shouldn’t necessarily come at the expense of affordable homes, but it does. As million-dollar homes become the norm, affordable homes change their definition overnight: As such, the threshold for what can be considered affordable – just like the number of luxury homes – is going up.”
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Thanks to Point 2.
