US Home Affordability by County

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Home affordability varies widely across the United States, with spatial features such as location, neighborhood characteristics, and regional economic conditions playing a crucial role. Urban areas, particularly in coastal regions and major cities, often experience higher housing costs, leading to lower affordability compared to rural areas and smaller towns.

Several factors contribute to the spatial variations in home affordability:

• Location: The location of a property within a city or region can significantly impact its affordability. Neighborhoods with proximity to amenities, employment opportunities, and good schools tend to have higher housing costs.
• Supply and Demand: Areas with high demand and limited housing supply often experience higher prices, making homes less affordable. This imbalance can be exacerbated by zoning regulations and land use policies.
• Economic Conditions: Regional economic factors, such as job growth, income levels, and cost of living, play a crucial role in determining housing affordability. Areas with strong economies tend to have higher housing costs but also higher incomes, balancing affordability to some extent.
• Housing Policies: Local and state housing policies, including rent control, affordable housing mandates, and property tax policies, can influence the affordability of housing in specific areas.
• Housing Stock: The age, size, and condition of the housing stock in a particular area can impact affordability. Older homes or areas with limited new construction may have more affordable housing options.

Reddit user TA-MajestyPalm created a map illustrating US home affordability by county for 2023. The map compares county median home values to median household incomes, providing a score that indicates affordability. For example, a score of “5” means the median home price in that county is 5 times the median household income.

A score under 4 is generally considered affordable, 4-6 is pushing it, and over 6 is considered unaffordable for the median income. It’s important to note that other factors, such as property tax, down payment amount, and assistance programs, also impact affordability. Property tax often varies at the city or township level, making it difficult to accurately reflect on the map.

The data used to create the map includes median household income data from the US Census Bureau and median home values from the National Association of Realtors, Zillow, and Redfin. Any missing data was supplemented with information from Zillow, Redfin, or Realtor.

Regions with the Most Unaffordable Real Estate

Some of the most unaffordable real estate in the United States can be found in regions such as:

• West Coast: Cities like San Francisco, Los Angeles, and Seattle are known for their high housing costs, driven by strong demand, limited supply, and high incomes in these areas.
• Northeast Corridor: Cities along the Northeast Corridor, including New York City, Boston, and Washington, D.C., also face affordability challenges due to high demand and limited space for new development.
• Mountain West: Cities in the Mountain West region, such as Denver and Salt Lake City, have seen significant increases in housing costs in recent years, outpacing income growth and affecting affordability.
• Sun Belt: Some Sun Belt cities, like Miami, Phoenix, and Austin, have experienced rapid population growth and rising housing costs, impacting affordability for residents.

The most affordable housing in the United States can generally be found in rural areas and small towns, particularly in the Midwest and South regions.