Nearly 75% of American households believe the nation is experiencing a housing affordability crisis, according to a recent survey published on behalf of the National Association of Home Builders.
Affordability appears to be a significant issue for renters and prospecting homeowners.
So realtor.com wanted to find the locations where housing is the most unaffordable.
What they discovered was not necessarily the most expensive real estate markets. The focus of the report is on regions where residents are spending above 28% of their household income on a place to live.
As realtor.com warns: “that can be a perilous financial line to walk.”
“The more you spend on housing the less you have to spend on other things you value and to fund your financial goals,” says Roger Ma, a financial planner at Lifelaidout and New York City–based real estate agent.
The real estate listings website said some cities made the list because “foreign, out-of-state, and second- and third-home buyers” had inflated prices out of reach of the locals, many of whom are considered to be the poor working class. Other areas are popular with retirees, who have lower incomes or are living on savings. And less expensive places on the list are due to low, local wages and a lack of high-paying jobs.