A 7% mortgage rate can make buying a home difficult, but the financial burden looks very different depending on where you live. While housing demand has weakened nationally, some cities are holding up better than others.
In this episode of the RiskWire Webcast, hosts Veros Chief Economist and Executive Vice President of Analytics Eric Fox and Senior Research Economist Reena Agrawal compare housing affordability across U.S. cities using home price-to-income ratios and examine what those differences reveal about local housing markets.
Key Insights:
- The home price-to-income figure helps compare housing affordability by the city by showing how much a typical home costs relative to local household income.
- In Rockford, Illinois, that ratio is about three times household income, compared with nearly nine times in San Diego, California.
- Local housing markets with lower home prices relative to local incomes have more room to absorb higher financing costs.
Watch Episode 52 of the RiskWire Webcast: Webcast & Interviews – RiskWire, powered by Veros
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