Various Locations In The United States Where Properties Are More Affordable

Buying a home for the first time can be pretty daunting particularly in the absence of a trustworthy real estate agent to work with. Aside from making sure that you can afford the mortgage, it is important to consider locations where properties are more affordable. Bloomberg News has made an analysis of 100 largest metropolitan areas in the United States in order to determine which of the locations will be more affordable for individuals between 25 and 44-age groups. An estimate was also made based on the minimum earnings required to be able to purchase a single family home.

The six locations that displayed an affordability gap includes Urban Honolulu and five regions that are all located in California; San Francisco, San Jose, Los Angeles, Oxnard and San Diego. Since Bloomberg used metropolitan statistical areas as proxies for cities in its rankings it would look like New York is more affordable that what everybody thinks. However, the statistical area of New York is quite large and it includes suburban counties like New Jersey and even a part of Pennsylvania where corresponding mortgages are easier to manage.

The reason for affordability problems in the US is tight supply particularly with entry level properties. In areas like California, there is strong job growth but with very little housing supply. Finding a home can be rather difficult and if you ever find one, it can be really expensive. Meanwhile, property markets in the Midwest have better housing supply meaning that it can readily absorb any increase in demand. While job growth in the area is not necessarily high, it is a great place to buy property because Iowa payrolls have been improving since June 2013. Besides that, borrowing costs are declining and more jobs are available which means that first home buyers can try the property market.

In order to realize the Australian dream of owning your first home, First Home Owners Centre provides helpful tips and specialized services to make the process simpler and more efficient. Comprehensive and truthful information is what you need so that you can own a new home in an affordable location.

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