Although America has 50 states, when you look at housing affordability you can more effectively split the U.S. as California versus everyone else.
According to Freddie Mac’s latest U.S. Economic & Housing Outlook for February, Frank Nothaft, Freddie Mac vice president and chief economist, said, “Rising home prices and interest rates along with little-to-no income growth has resulted in a substantial erosion of homebuyer affordability over the past year.”
“Therefore, jobs and income growth are necessary for 2014 to turn in another gold-medal performance for the housing recovery," he added.
The enterprise included an interactive graphic showing housing affordability across America.
For this article's purpose, I followed the boundaries of a 4.29% mortgage rate, 10% down payment, 2.18% taxes and insurance, no change in expected income and no change in house price index. However, all of these elements are interchangeable.
So are you in an unaffordable market? If you live in California, or anywhere in the West coast, the answer is likely a yes.
Click below to access the 5 most affordable and unaffordable housing markets.