AFFORDABILITY OF U.S. CITIES FOR FIRST TIME HOME BUYERS

New Listings Reaching Normalcy
The increasing amount of new listings over the past 60 days in the DFW Metro market is showing signs that we are reaching a normal market for new listings. However, the huge inventory of buyers well exceed the supply of listings and all indications are that our strong seller’s market will continue for the next two to three years, with a continual increase in home prices. Approximately 18,900 homes came on the market in May 2014, compared to 17,468 new listings in May 2012. That is a healthy 9% increase. It was in May 2012 when the DFW Metro market made a significant correction, with May the last month of a buyer’s market to August 2012 when the region had become a seller’s market.

AFFORDABILITY OF U.S. CITIES FOR FIRST TIME HOME BUYERS
A starter home in San Francisco is $679,800, but in Cleveland it is only $102,100. But it takes a hefty income of
$137,129.55 in San Francisco to purchase the starter home. Dallas now ranks 16th in most expensive housing markets,
a huge change over the last many years when Dallas was always one of the most affordable cities.
CITY
Income Needed
Starter Home
Price Change from 2013
1. San Francisco
$137,129.55
$679,800
14.50%
2. San Diego
$98,534.22
$483,000
17.10%
3. New York City
$89,788.69
$388,900
5.60%
4. Los Angeles
$85,964.88
$406,200
17.60%
5. Boston
$79,820.01
$363,200
9.30%
6. Washington, DC
$78,503.56
$358,900
2.90%
7. Seattle
$73,851.06
$339,900
8.70%
8. Portland
$60,307.71
$271,900
10.30%
9. Denver
$59,892.46
$288,400
10.40%
10. Miami
$59,734.23
$259,000
15.10%
11. Sacramento
$58,113.87
$255,800
22.20%
12. Baltimore
$53,078.51
$224,500
-0.90%
13. Chicago
$52,866.88
$176,900
11%
14. Philadelphia
$50,546.25
$201,800
2.10%
15. Houston
$49,036.60
$184,600
12.80%
16. Dallas
$47,708.77
$174,800
9%
17. Minneapolis
$45,732.39
$188,200
10.30%
18. San Antonio
$44,506.00
$169,300
8%
19. Orlando
$43,243.95
$178,000
18.70%
20. Phoenix
$41,308.74
$194,300
15%
21. Tampa
$36,437.56
$145,000
7.40%
22. Atlanta
$34,183.44
$141,900
23.30%
23. Detroit
$32,250.30
$110,750
35.60%
24. Cincinnati
$31,850.18
$121,700
0.06%
25. St. Louis
$31,275.49
$120,500
8.60%
26. Pittsburgh
$30,177.78
$120,000
-1.80%
27. Cleveland
$29,788.67
$102,100
1.10%