For first-time buyers on a budget, affordable homes have become increasingly scarce, especially for those looking to buy in large metro areas. Amid ongoing home price increases, Point2Homes recently conducted a study to gauge the current stock of homes less than $150,000 in the nation’s 50 most populous and desirable cities to see what this bare minimum home price can get homebuyers in these markets.
According to the results, in 46 of the 50 largest cities, homes under $150,000 represent less than 5% of all homes currently on the market. What’s more, homes under $100,000 are almost non-existent. “Unfortunately, what used to be considered decently priced homes for first-time homebuyers are now simply vanishing,” reads the report.
Here are some additional key findings:
- In 25 of the largest U.S. cities, homes under $150,000 constitute less than 1% of all homescurrently available on the market.
- 5 of the most populous cities have zero homes available for $150,000or less: San Francisco (CA), Irvine (CA), Oakland (CA), Gilbert (AZ), Henderson (NV).
- Of the 4 cities where the median home price is higher than $1 million, only Fremont (CA)has 1% affordable homes for sale, along with San Jose (CA) where homes under this price point represented 0.3%.
- Saint Petersburg (FL)and Mesa (AZ) are the only two cities to have a share of more affordable homes above 10%: 12.3% and 14.8%, respectively.
Top 5 cities with highest shares of listings under $150,000:
||Share of listings under 150K
||Saint Petersburg, Florida
“With home prices breaking new records on a near-weekly basis, it’s no wonder that the stock of luxury and ultra-luxury homes for sale is on the rise,” says Andra Hopulele, author of the Point2Homes report. “However, this means more and more Americans are stuck renting month after frustrating month due to a lack of more affordable options.”
“In the truly expensive, most-wanted urban hubs,” Hopulele notes, “$150,000 means almost nothing. And sometimes, even cities that are in the same state and separated by just a few miles can display great disparities. For example, in Mesa Arizona, $110,000 buys you a two-bedroom, two-bathroom, 1,560-square-foot home, whereas less than 10 miles away in Gilbert, , you’d need almost $285,000 to buy the cheapest two-bedroom, two-bathroom home currently on the market.”
Click here to read the full report