Some Areas More Affordable for Potential Home Owners

Washington, DC, Aug. 8, 2016 -- The U.S. homeownership rate has slowly fallen in recent years to currently its lowest level since 1965, but new research from the National Association of Realtors reveals that there are affordable metro areas right now with above-average hiring and a large segment of current renters who earn enough income to qualify to buy a home.  

NAR reviewed employment growth, household income and qualifying income levels in nearly 100 of the largest metropolitan statistical areas across the country to determine which areas with employment gains above the recent national average also have the largest share of renters who can currently afford to buy a home.

Of the top 10 metro areas with the highest share of renters who earn enough to buy, nine were either in the South or Midwest — including three cities in Ohio. 

Lawrence Yun, NAR chief economist, says there's been a significant increase in renter households — both young adults and those who lost their home — since the Great Recession, and especially in metro areas that have seen robust job creation and a resulting influx of new residents. This has led to a multi-year run-up in rents in several markets that have contributed to many of these renters' inability to advance into homeownership.

"However, this new study reveals that there are several affordable, middle-tier markets with solid job gains and a large segment of renters who earn enough to buy."  

The top markets with the highest share of renters who can afford to purchase a home are:

Toledo, Ohio (46 percent)

Little Rock, Arkansas (46 percent)

Dayton, Ohio (44 percent)

Lakeland, Florida (41 percent)

St. Louis, Missouri (41 percent)

Columbia, South Carolina (41 percent)

Atlanta (40 percent)

Columbus, Ohio (38 percent)

Tampa, Florida (38 percent)

Ogden, Utah (38 percent)