Kokomo, Ind., tops list of most affordable cities

Real Estate Watch

March 08, 1998

For those of you who can't afford your dream home in Baltimore, the National Association of Homebuilders has the place for you.

Kokomo, Ind., was named the nation's most affordable housing market for the third quarter of 1997, according to the NAHB's Housing Opportunity Index of 195 cities.

The rankings, which are based on marketing and survey data, measure the percentage of homes sold in a city in which a family that meets the median income for that city could afford to buy. Kokomo's median sales price was $69,000, 46 percent under the national sales price median of $127,000.

The NAHB attributed Kokomo's ranking to its high income and low median home price. The median family income in Kokomo was $46,000, therefore, such a family would be able to afford 94.6 percent of the homes sold there.

The Wilmington-Newark metropolitan area, considered part of Delaware and Maryland, was the fourth-most-affordable housing market in the country, and the most affordable in the southern region. But the Baltimore metropolitan area was ranked only 111th in affordability, nationally, and 46th regionally.

San Francisco, with a median home sale price of $315,000 and a median family income of $64,400, remained the least-affordable city in the country.

On the national level, housing affordability remained steady during the third quarter. The Housing Opportunity Index fell less than one point, as a drop in interest rates offset a $4,000 increase in the median price of a home.

Pub Date: 3/08/98

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