Home Sweet (Unaffordable) Home

Home Sweet (Unaffordable) Home

In many large cities, more than 50% of households cannot afford a home, according to a new study from personal finance news and features website GOBankingRates.com.

Six cities on the U.S. coasts have a 70 percent or higher percentage of households that can’t afford a home.

GOBankingRates used the median home listing price in the 100 largest cities to calculate typical monthly mortgage payments.

Using the rule that no more than 30 percent of income should go toward housing, GOBankingRates calculated the income needed to afford a mortgage.

Researchers then compared this income to the number of households with income equal to or greater than that amount.

And the Losers Are:

Here are the Top Five Cities with the highest percentage of households that can’t afford a home:

San Francisco

Median listing price: $1,199,000

Percentage of households that can’t afford a home: 76.7 percent

Boston

Median listing price: $725,000

Percentage of households that can’t afford a home: 75.7 percent

Miami

Median listing price: $450,000

Percentage of households that can’t afford a home: 74.3 percent

Long Beach, California

Median listing price: $549,900

Percentage of households that can’t afford a home: 73.5 percent

Los Angeles

Median listing price: $749,000

Percentage of households that can’t afford a home: 72.9 percent

Perhaps unsurprising due to its high real estate prices, six of the top 10 cities with the highest percentage of households that can’t afford homes are in California.

Some surprising cities made the final list. In New Orleans, the median home price is $300,000 but 65.4 percent of households can’t afford a home because wages are lower.

Another finding: median home prices in Oakland, Calif., are half as expensive as they are across the bay in San Francisco.

It’s tough out there.

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