{"id":1708429,"date":"2022-10-24T06:02:04","date_gmt":"2022-10-24T10:02:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1708429"},"modified":"2022-10-24T07:21:40","modified_gmt":"2022-10-24T11:21:40","slug":"there-are-now-only-four-u-s-cities-where-the-average-american-can-afford-a-starter-home","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/there-are-now-only-four-u-s-cities-where-the-average-american-can-afford-a-starter-home\/","title":{"rendered":"There Are Now Only Four U.S. Cities Where the Average American Can Afford a Starter Home"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthere-are-now-only-four-u-s-cities-where-the-average-american-can-afford-a-starter-home%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1708429&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"group\">\n<p>With homeownership costs doubling since last year, the market for starter homes has become unaffordable for most buyers in all but four major U.S. cities, according to a recent study published by <a href=\"https:\/\/www.point2homes.com\/news\/research\/starter-homes-where-to-find-them-entry-level-house-myth.html\" target=\"_blank\" rel=\"noopener\">real estate site Point2<\/a>.<\/p>\n<p>Those cities are:<\/p>\n<ul>\n<li>Detroit<\/li>\n<li>Tulsa, Oklahoma<\/li>\n<li>Memphis, Tennessee<\/li>\n<li>Oklahoma City<\/li>\n<\/ul>\n<p>Starter homes are generally thought of as the first home a family can purchase, so they tend to be smaller and cheaper than other homes listed for sale. But due to homeownership costs, the starter home is becoming the &#8220;stuff of myths,&#8221; according to Point2.<\/p>\n<p>For the purposes of Point2&#8217;s analysis, starter homes are those valued in the bottom third of all homes available in a given market.\u00a0To measure affordability, the study follows the common personal finance rule that a mortgage payment shouldn&#8217;t exceed 30% of a homeowner&#8217;s gross monthly income.<\/p>\n<p>Here&#8217;s a closer look at the four cities where starter homes are actually affordable for those earning the area&#8217;s median household income.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-styles-makeit-subtitle--JP3GH\">1. Detroit<\/h2>\n<div class=\"group\">\n<p><strong>Median annual income<\/strong>: $25,004<\/p>\n<p><strong>Income needed to afford a starter home<\/strong>: $19,103<\/p>\n<p><strong>Median starter home price<\/strong>: $48,129<\/p>\n<\/div>\n<h2 class=\"ArticleBody-styles-makeit-subtitle--JP3GH\">2. Tulsa, Oklahoma<\/h2>\n<div class=\"group\">\n<p><strong>Median annual income<\/strong>: $35,039<\/p>\n<p><strong>Income needed to afford a starter home<\/strong>: $29,521<\/p>\n<p><strong>Median starter home price<\/strong>: $95,481<\/p>\n<\/div>\n<h2 class=\"ArticleBody-styles-makeit-subtitle--JP3GH\">3. Memphis, Tennessee<\/h2>\n<div class=\"group\">\n<p><strong>Median annual income<\/strong>: $30,093<\/p>\n<p><strong>Income needed to afford a starter home<\/strong>: $27,966<\/p>\n<p><strong>Median starter home price<\/strong>: $87,174<\/p>\n<\/div>\n<h2 class=\"ArticleBody-styles-makeit-subtitle--JP3GH\">4. Oklahoma City<\/h2>\n<div class=\"group\">\n<p><strong>Median annual income<\/strong>: $37,211<\/p>\n<p><strong>Income needed to afford a starter home<\/strong>: $37,071<\/p>\n<p><strong>Median starter home price<\/strong>: $126,442<\/p>\n<\/div>\n<h2 class=\"ArticleBody-styles-makeit-subtitle--JP3GH\">Why starter home costs have risen<\/h2>\n<div class=\"group\">\n<p>Aside from a <a href=\"https:\/\/tradingeconomics.com\/united-states\/housing-starts\" target=\"_blank\" rel=\"noopener\">chronic shortage of housing<\/a> that predates the Covid-19 pandemic, supply constraints and growing costs for building materials have contributed to increasing home prices, says Lawrence Yun, chief economist at the National Association of Realtors.<\/p>\n<p>And with home prices up by nearly 30%, &#8220;we know for sure people&#8217;s incomes have not risen by 30%,&#8221; he says.\u00a0<\/p>\n<p>The market will likely remain discouraging, at least until mortgage rates drop and the supply of homes catches up with demand, says Yun. Unfortunately for potential homebuyers, home building has <a href=\"https:\/\/www.reuters.com\/markets\/europe\/us-housing-starts-fall-september-building-permits-rise-2022-10-19\/\" target=\"_blank\" rel=\"noopener\">slowed recently<\/a> due to economic uncertainty.<\/p>\n<p>&#8220;The starter home market has become increasingly difficult over the past 20 years,&#8221; says Yun. This has created a &#8220;social divide&#8221; between homeowners and non-homeowners, who &#8220;simply feel like they cannot catch up.&#8221;<\/p>\n<p><em><strong>Sign up now:\u00a0<\/strong><\/em><a href=\"https:\/\/www.cnbc.com\/make-it-newsletters\/\"><em><strong>Get smarter about your money and career with our weekly newsletter<\/strong><\/em><\/a><\/p>\n<p><em><strong>Don&#8217;t miss:\u00a0<\/strong><\/em><a href=\"https:\/\/www.cnbc.com\/2022\/10\/05\/millionaire-who-retired-early-shares-what-you-should-do-now-to-eliminate-regret-later-in-life.html\"><em><strong>Self-made millionaire who retired early: &#8216;Do these 5 things now or you&#8217;ll regret it later in life&#8217;<\/strong><\/em><\/a><\/p>\n<\/div>\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107106729\" class=\"PlaceHolder-styles-makeit-wrapper--thzO_\" data-vilynx-id=\"7000259686\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-styles-makeit-videoEmbed--utFcj\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-styles-makeit-wrapper--wHgUB\">\n<div class=\"InlineVideo-styles-makeit-inlineThumbnailContainer--G6zAg\"><img decoding=\"async\" class=\"InlineVideo-styles-makeit-videoThumbnail--koCZV\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107106823-NYCRent_Thumb_clean.jpg?v=1660999714&#038;w=750&#038;h=422&#038;vtcrop=y\" alt=\"Why rent in NYC is out of control right now\" \/><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>With homeownership costs doubling since last year, the market for starter homes has become unaffordable for most buyers in all but four major U.S. cities, according to a recent<\/p>\n","protected":false},"author":1,"featured_media":1708432,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1708429","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1708429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1708429"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1708429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1708432"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1708429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1708429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1708429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}