Phoenix Deemed Unaffordable for Home Buyers. But It’s Worse Elsewhere.
A new analysis of home prices and income levels finds Phoenix “severely unaffordable,” yet nowhere near as bad as several U.S. cities.
The calculation, by Point2 Homes, a real estate trend-analysis company, divided median home sale prices by median annual family incomes to determine an affordability multiple. Lower numbers represent greater affordability [see chart below].
Among the country’s 32 cities with the most population, Phoenix ranked as the 13th most affordable, behind such urban locales as Detroit, Philadelphia and Houston. Phoenix is more affordable than 15 cities, including Las Vegas, San Francisco and New York City (counting all five boroughs as one).
A similar study in July, by SmartAsset, found Phoenix more affordable than many cities for both home buyers and renters. A separate study last month found the affordability gap rising across the country, as home prices increase faster than wages.