New York City was named among the least affordable cities in the United States over the month of October, according to the latest National Affordability Report from the real estate firm RealtyHop. The Big Apple ranked as the fourth-least affordable city, moving up from the fifth place spot in the prior month’s report.
The cost of a home in New York City ended up increasing, with the real estate value growing 3.8%. High interest rates and asking prices were cited as two of the main contributing factors to New York City becoming less affordable over the last month. With New York City having high rental prices as well, those who wish to live there must consider whether they would be better off closing on a home or signing a lease.
The report determined that approximately 68.99% of income from New York City households is devoted to paying housing costs, ranking as the fourth-highest percentage. The median home price in New York City ranked as the ninth-highest, at $825,000. The projected median household income of $73,228 ranked as the 48th-highest. The estimated mortgage plus taxes, which was determined to be $4,209.78, ranked as the ninth-highest.
The RealtyHop Metro Affordability Report analyzes proprietary and American Community Survey Census data to provide an index of housing affordability and homeownership burden across the 100 most populous cities in the country.
All listings in the RealtyHop database over the month prior to publication are used to calculate the median home prices. Statistics used to calculate the index include projected median household income, median for-sale home listing prices via RealtyHop data, local property taxes via American Community Survey Census data and mortgage expenses (assuming a 30-year mortgage, 5.5% interest rate and 20% down payment).