Regional Affordability Highest In The Midwest

Regional Affordability Highest In The Midwest
Much of the media buzz has been about the ‘struggling’ real estate market. National statistics paint a cautionary picture. Remember, though, that real estate is local! Housing has always been priced more reasonably – and more affordably – in the Midwest. Buyers are usually shocked by lenders’ willingness to loan them large sums of money for a home purchase. Most buyers shy away from the maximum loan amount a lender is willing to finance. This area is a consumer market where residents have more disposable income to spend on ‘stuff’: consumer goods and larger purchases for the home or for transportation, and on activities such as eating out and going to OSU games at the Horseshoe (which now seems to require a small mortgage to finance!).
 
The National Association of REALTORS has analyzed affordability by region in the US, and it shows that the market in the Midwest remains very affordable. Even with the current higher interest rates (which are still historically low), the real estate market has barely slowed here. The accompanying chart compares the median family income with median qualifying income (to finance a home purchase) by region, and here is where the Midwest’s affordability shines. Area natives and workers no longer tied to an office are coming to this region – often with sizeable proceeds from a much more expensive home. Both the general increase in demand and the greater wealth and/or income of some buyers relocating into this market have contributed to the rise in prices here.
 

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