U.S. home prices hit a record high last summer and are still high this summer, according to the National Association of Realtors. These conditions have left many potential home buyers frustrated.
According to research group Scholaroo, 91% of people in the U.S. have a desire to buy a home. However, just 65.5% of U.S. households are buyers rather than renters.
In a new report, Scholaroo analyzed every state in the U.S. to find where homes are most affordable in 2023. Researchers considered five metrics: median home value, mortgage payment to monthly income ratio, average monthly household income, average monthly mortgage payment and property taxes.
Here’s what they found:
Top ranked states
· Minnesota
· Indiana
· Missouri
· Iowa
· West Virginia
Lowest ranked states
· Hawaii
· California
· Montana
· Oregon
· Utah
While West Virginia had the most affordable median home value in the country at $166,870, Connecticut had the “most favorable” mortgage payment to monthly income ratio at 22.95%. Hawaii may have come in dead last, but it does have the lowest property taxes in the nation at 0.31%.
Some experts believe that home prices will soon fall in the U.S., according to a recent report in Fox Business. Still, there is high demand for housing in the nation.
“The recovery has not taken place, but the housing recession is over,” said NAR Chief Economist Lawrence Yun, per a July 27 press release. “The presence of multiple offers implies that housing demand is not being satisfied due to lack of supply. Homebuilders are ramping up production and hiring workers.”
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