Despite their current downtrend, mortgage rates had a heavy affect on homeowner affordability in 2023. Specifically, buying power (a homebuyer’s budget)and square footage (what home size is affordable) have been two of the areas most affected by the shifts in rates.
A new report from Point2 takes a look at the smallest and largest changes in buying power and square footage in cities across the country.
Overall, the report found that the average 2023 home seeker could afford to spend about $3,100 less on a home, and that buyers in 61 large cities now afford less living space than they did last year.
The five biggest losses in buying power in 2023:
- Lincoln, Nebraska
Loss in buying power: $38,653
Affordable home price in 2023: $191,053 (down from $229,706 in 2022)
- Tulsa, Oklahoma
Loss in buying power: $34,958
Affordable home price: $168,061 (down from $203,019)
- Oklahoma City, Oklahoma
Loss in buying power: $30,751
Affordable home price: $206,423 (down from $237,174)
- Kansas City, Missouri
Loss in buying power: $29,694
Affordable home price: $217,950 (down from $247,645)
- Wichita, Kansas
Loss in buying power: $29,290
Affordable home price: $190,337 (down from $219,627)
And the five biggest losses in square footage:
- Detroit, Michigan
Loss in square footage: 373
Affordable space in 2023: 1,624 sq ft (down from 1,997 in 2022)
- Tulsa, Oklahoma
Loss in sq ft: 341
Affordable space: 1,234 sq ft (down from 1,575)
- Wichita, Kansas
Loss in sq ft: 313
Affordable space: 1,645 sq ft (down from 1,958)
- Lincoln, Nebraska
Loss in sq ft: 297
Affordable space: 1,260 sq ft (down from 1,557)
- Toledo, Ohio
Loss in sq ft: 262
Affordable space: 1,591 sq ft (down from 1,853)
For the full report, click here.
