Declining home prices aren’t all doom and gloom. Forbes used the National Association of Home Builders (NAHB) Housing Opportunity Index (HOI) to take a look at which of the 50 largest U.S. cities were changing the most with regard to affordability.
Affordabilty in this case means what percentage of homes sold are affordable by a median-earning household.
The Phoenix real estate market affordability came in at 30% in 2007. That number is now up to 60%, ranking Phoenix at #3.
For the nay-sayers, it’s not just housing price declines that lead to greater affordability. Increased buying activity can be a factor, influxes of first time home buyers (who tend to buy less expensive homes), and a relatively stable local economy all come in to play.
Yes, many of the markets listed below have been hammered hard. But increasing affordability is a good thing and a nice step toward helping stabilize and correct the housing market.
And here are the “Top 10” increasingly affordable real estate markets:
1. Las Vegas, NV
2. Sacramento, CA
3. Phoenix, AZ
4. Washington, D.C.
5. Tampa, FL
6. Providence, R.I.
7. Riverside, CA
8. Orlando, FL
9. Boston, MA
10. San Diego, CA