Latest news with #OrpheDivounguy
Axios
a day ago
- Business
- Axios
What it costs to afford rent in Salt Lake City
Renters need to earn nearly $70,000 a year to afford the typical monthly rent in Salt Lake City, according to a Zillow analysis. Why it matters: Salt Lake City rent has surged 34% since April 2020, per Zillow, outpacing wage growth and making it harder for renters to avoid becoming rent-burdened. By the numbers: The annual income needed to afford rent in Utah's capital is roughly $11,000 less than the national average of $80,949. As of April, the typical monthly rent in Salt Lake is $1,747 — $233 below the national average. In 2023, the median household income in the city was $74,925, according to Census data. Between the lines: It's generally recommended to budget 30% of your monthly income for your rent or mortgage payment, but that benchmark is becoming harder to attain for many Americans. What they're saying: "This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a down payment on a future home," said Orphe Divounguy, a senior economist at Zillow, in a statement.
Yahoo
3 days ago
- Business
- Yahoo
Here's where normal people can still buy homes, according to real estate data
(NEXSTAR) – If you've given up on home ownership, you're not alone. The dream has grown unaffordable and unrealistic for Americans in many major cities. 'The rapid rise in home values coupled with the doubling of mortgage rates caused the cost of owning a home to soar. Unfortunately, incomes just haven't kept up. That lowered affordability everywhere,' said Zillow senior economist Orphe Divounguy. But if you look closely, some pockets of America are still considered 'affordable' to the average family. In a data analysis shared with Nexstar, Zillow identified which cities are affordable by determining where the median-income family is able to spend less than one-third of their income on housing costs. Looking for a home under $300K? Try these 10 major US metros If you're able to scrape together a 20% down payment, several dozen metro areas remain affordable for a median family looking to buy. However, most people don't have that much cash sitting around in the bank. When you set the target to a more reasonable 10% down payment, only 11 metro areas are still considered 'affordable': Pittsburgh, Pennsylvania Toledo, Ohio Columbia, South Carolina Syracuse, New York Jackson, Mississippi Wichita, Kansas Akron, Ohio Augusta, Georgia Little Rock, Arkansas St. Louis, Missouri Birmingham, Alabama Most places that still rank as affordable are found in the Midwest and the South, where zoning codes tend to be more lenient and builders have been able to respond to rising demand more quickly. 'At the start of the pandemic, when residential mobility increased, home values in the Midwest, Great Lakes region and more inland South shot up just as fast as the rest of the country, and even faster in some metros. But home values in these regions — for the most part — were relatively less expensive to begin with,' Divounguy said. 'So even with all that growth, many of them are still relatively more affordable, especially if you have access to a large down payment.' If you're looking for the lowest prices overall, Redfin recently released a list of 10 major metro areas where homes are still under $300,000. Those willing to relocate to Detroit will find some of the best deals. The median sale price there is $180,000. Amazon reportedly issuing refunds for returns made years ago As mentioned before, if prospective homebuyers are able to put a larger payment down up-front, their real estate prospects expand. Cincinnati, Indianapolis and Oklahoma City all become affordable to a median-income family with a 20% down payment. (See the full list at the bottom of this story.) For now, a few Upstate New York cities remain on the list, but that could soon change, according to Divounguy. Buffalo has been one of the hottest housing markets in the country the past couple years and supply isn't keeping up with demand. 'Strong job growth in the area has far outstripped new permits, and inventory of homes is nearly half what it was before the pandemic. Buffalo was previously one of the most accessible large cities in the nation. Now a mortgage for a typical home there is unaffordable for a family making the median household income, even with a 20% down payment.' Metro area Total monthly home payment (with 20% down) Pittsburgh, PA $1,601 Toledo, OH $1,434 Columbia, SC $1,539 Syracuse, NY $1,705 Jackson, MS $1,367 Wichita, KS $1,579 Akron, OH $1,671 Augusta, GA $1,607 Little Rock, AR $1,584 St. Louis, MO $1,894 Birmingham, AL $1,706 Cincinnati, OH $1,937 Indianapolis, IN $1,963 Oklahoma City, OK $1,765 Detroit, MI $1,839 Baton Rouge, LA $1,662 Rochester, NY $1,902 Cleveland, OH $1,753 McAllen, TX $1,414 Louisville, KY $1,786 Chicago, IL $2,268 Des Moines, IA $2,138 Omaha, NE $2,147 Columbus, OH $2,075 Greensboro, NC $1,696 Tulsa, OK $1,751 Memphis, TN $1,726 Winston, NC $1,746 Houston, TX $2,216 Scranton, PA $1,604 Greenville, SC $1,961 Baltimore, MD $2,674 El Paso, TX $1,692 Kansas City, MO $2,254 Harrisburg, PA $2,158 Minneapolis, MN $2,711 New Orleans, LA $1,753 Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
3 days ago
- Business
- The Hill
Here's where normal people can still buy homes, according to real estate data
(NEXSTAR) – If you've given up on home ownership, you're not alone. The dream has grown unaffordable and unrealistic for Americans in many major cities. 'The rapid rise in home values coupled with the doubling of mortgage rates caused the cost of owning a home to soar. Unfortunately, incomes just haven't kept up. That lowered affordability everywhere,' said Zillow senior economist Orphe Divounguy. But if you look closely, some pockets of America are still considered 'affordable' to the average family. In a data analysis shared with Nexstar, Zillow identified which cities are affordable by determining where the median-income family is able to spend less than one-third of their income on housing costs. If you're able to scrape together a 20% down payment, several dozen metro areas remain affordable for a median family looking to buy. However, most people don't have that much cash sitting around in the bank. When you set the target to a more reasonable 10% down payment, only 11 metro areas are still considered 'affordable': Most places that still rank as affordable are found in the Midwest and the South, where zoning codes tend to be more lenient and builders have been able to respond to rising demand more quickly. 'At the start of the pandemic, when residential mobility increased, home values in the Midwest, Great Lakes region and more inland South shot up just as fast as the rest of the country, and even faster in some metros. But home values in these regions — for the most part — were relatively less expensive to begin with,' Divounguy said. 'So even with all that growth, many of them are still relatively more affordable, especially if you have access to a large down payment.' If you're looking for the lowest prices overall, Redfin recently released a list of 10 major metro areas where homes are still under $300,000. Those willing to relocate to Detroit will find some of the best deals. The median sale price there is $180,000. As mentioned before, if prospective homebuyers are able to put a larger payment down up-front, their real estate prospects expand. Cincinnati, Indianapolis and Oklahoma City all become affordable to a median-income family with a 20% down payment. (See the full list at the bottom of this story.) For now, a few Upstate New York cities remain on the list, but that could soon change, according to Divounguy. Buffalo has been one of the hottest housing markets in the country the past couple years and supply isn't keeping up with demand. 'Strong job growth in the area has far outstripped new permits, and inventory of homes is nearly half what it was before the pandemic. Buffalo was previously one of the most accessible large cities in the nation. Now a mortgage for a typical home there is unaffordable for a family making the median household income, even with a 20% down payment.'
Yahoo
23-05-2025
- Business
- Yahoo
More economists think home prices will fall this year
More than a decade of near-continuous home price appreciation may end this year. Amid growing signs of a weak spring for home sales — sellers are listing but buyers aren't buying — more housing economists are expecting a slight dip in average home prices this year. Redfin now expects median home prices to finish 2025 about 1% lower than 2024, while Zillow is calling for a 1.4% decline. If those predictions hold true, 2025 would be the first year home prices have fallen since 2023, when a sharp spike in mortgage rates drastically reduced affordability and priced many would-be buyers out of the market. 2023 was also something of a blip. Buyers returned when mortgage rates dropped from highs near 8%, and they quickly bid up prices again when faced with little supply. Median home prices continued to set new records last year and into 2025. Now there are signs the market is shifting. The combination of sky-high prices and mortgage rates near 6.8% has kept many buyers sidelined even as inventory rises to levels not seen since mid-2020. 'The total number of homes for sale is up 20% from a year ago,' said Orphe Divounguy, a senior economist at Zillow. 'It's the best thing that could happen for buyers. It means buyers have more bargaining power, and they have more options to choose from.' Regional differences Even as the nationwide median home price looks poised to drop, the trend doesn't hold in all markets. In the four weeks through May 18, median sales prices declined in 10 of the top 50 largest metropolitan areas in the country, according to Redfin data. And Fannie Mae's Home Price Appreciation Index, which tracks single-family homes, calls for a 4.1% jump in prices this year, firmly positive but below last year's 5.8% increase. Cities where homebuilding has been robust in recent years, like Dallas, Houston, Austin, Tex., and Tampa, Fla., saw some of the largest price declines this May compared to a year earlier. Meanwhile, prices are still rising in parts of the Northeast and the Midwest. Median sales prices were up 13.8% in the Philadelphia area through May 18, compared to a year earlier. Miami prices gained more than 10%, while the Detroit metro area saw a 9.5% jump. Buyers are being picky for now. Existing home sales in April were the most sluggish for that month since 2009, during the depths of the financial crisis. Sales were down from a year earlier in all regions of the country except the Northeast, where they held flat. Home sales that were completed in April usually went under contract in February or March, slightly before the traditional peak homebuying season got underway. Divounguy, though, is optimistic that sales will pick up into the summer as some of the recent economic uncertainty fades and prospective buyers who put their plans on hold get comfortable enough to return to the market. He expects home sales to rise 1.4% compared to last year as affordability improves slightly. Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.
Yahoo
23-05-2025
- Business
- Yahoo
More economists think home prices will fall this year
More than a decade of near-continuous home price appreciation may end this year. Amid growing signs of a weak spring for home sales — sellers are listing but buyers aren't buying — more housing economists are expecting a slight dip in average home prices this year. Redfin now expects median home prices to finish 2025 about 1% lower than 2024, while Zillow is calling for a 1.4% decline. If those predictions hold true, 2025 would be the first year home prices have fallen since 2023, when a sharp spike in mortgage rates drastically reduced affordability and priced many would-be buyers out of the market. 2023 was also something of a blip. Buyers returned when mortgage rates dropped from highs near 8%, and they quickly bid up prices again when faced with little supply. Median home prices continued to set new records last year and into 2025. Now there are signs the market is shifting. The combination of sky-high prices and mortgage rates near 6.8% has kept many buyers sidelined even as inventory rises to levels not seen since mid-2020. 'The total number of homes for sale is up 20% from a year ago,' said Orphe Divounguy, a senior economist at Zillow. 'It's the best thing that could happen for buyers. It means buyers have more bargaining power, and they have more options to choose from.' Regional differences Even as the nationwide median home price looks poised to drop, the trend doesn't hold in all markets. In the four weeks through May 18, median sales prices declined in 10 of the top 50 largest metropolitan areas in the country, according to Redfin data. And Fannie Mae's Home Price Appreciation Index, which tracks single-family homes, calls for a 4.1% jump in prices this year, firmly positive but below last year's 5.8% increase. Cities where homebuilding has been robust in recent years, like Dallas, Houston, Austin, Tex., and Tampa, Fla., saw some of the largest price declines this May compared to a year earlier. Meanwhile, prices are still rising in parts of the Northeast and the Midwest. Median sales prices were up 13.8% in the Philadelphia area through May 18, compared to a year earlier. Miami prices gained more than 10%, while the Detroit metro area saw a 9.5% jump. Buyers are being picky for now. Existing home sales in April were the most sluggish for that month since 2009, during the depths of the financial crisis. Sales were down from a year earlier in all regions of the country except the Northeast, where they held flat. Home sales that were completed in April usually went under contract in February or March, slightly before the traditional peak homebuying season got underway. Divounguy, though, is optimistic that sales will pick up into the summer as some of the recent economic uncertainty fades and prospective buyers who put their plans on hold get comfortable enough to return to the market. He expects home sales to rise 1.4% compared to last year as affordability improves slightly. Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.
