A new study shows COVID-19 has upended the housing market and Mississippi is the most affordable state to buy a home in America while Hawaii is the least affordable.
Coronavirus has led to record low mortgage rates and a boom in home buying. With people working from home and not tied to big urban areas, many are migrating to smaller cities, towns, and rural areas where it is cheaper and safer.
ReFiGuide.org today released a study on the Most and Least Affordable Places to Buy a Home using the most recent United States Census data on income and Zillow’s 2020 Market Estimates report.
Rankings were determined by measuring median household income as a percentage of home prices in more than 600 of the largest areas nationwide.
Here are key findings:
• The five most affordable states to buy a home include Mississippi, Ohio and Oklahoma, Michigan, Illinois. The five least affordable states include Hawaii, D.C., California, Massachusetts, Washington.
• Mississippi is the No. 1 most affordable state with average income covering 65% of what it would cost for a resident to buy a home. Hawaii was the No. 1 least affordable state with income covering only 10%.
• Youngstown, OH is the No. 1 most affordable city in America with income covering 110.3% of what it costs to buy a home in the area. Newport Beach, CA is the least affordable city in America with income covering just 5.3% of a home.
• Nationally, 24 out of the top 25 least affordability cities are in California. A few cities in New York, Colorado, Hawaii, and Florida also make the list.
• Each of the top 12 most affordable states are in the South and Midwest.
