Just like in many other parts of the country, home prices are climbing in Palm Beach County, FL. But, in the second quarter of 2018, the prices have gotten so high that affordability in the area has been reported at a 10-year low. According to the Wells Fargo Housing Opportunity Index, just 55% of homes sold in Palm Beach County were affordable to a median-income family (based on a median home price of $260,000 and an income of $71,800.)
The national rate isn’t much better, with only 52% of new and existing homes being affordable to median-income families. This is down drastically from the first quarter of 2018, when 61.6% of homes were affordable to median-income families. The median home price also jumped from $252,000 to 265,000, which is the highest quarterly median price on record. According to the National Association of Home Builders, there are a number of factors influencing these trends. Housing demand is not shrinking, due in part to economic expansion and low unemployment rates. But, add in trade war concerns and climbing interest rates, and housing affordability will continue to shrink.
The nation’s most affordable market currently is Syracuse, NY, where 89.1% of existing homes sold were affordable to median-income families and the least affordable is San Francisco, where just 5.5% of homes sold were affordable to median income families.