It’s no secret that the real estate market has its shares of ups and downs. What you really want to know is can you afford a home in 2018. With home prices on the upswing and the federal reserve set to increase interest rates, let’s see what you’ll need going forward
Whatever you think of the housing market, this article in Zerohedge drives home the point that it really is about location, location, location. The graph below illustrates this point. Here’s the square footage you can expect at the median home price in the United States.
Outside of Ohio, the most affordable homes are in more rural areas of the country. The most affordable states are notable for having small urban centers, largely devoid of major cities.
- Indiana – 2,330 sq. ft.
- Arkansas – 2,227 sq. ft.
- Mississippi – 2,277 sq. ft.
- West Virginia – 2,252 sq. ft.
- Ohio – 2,252 sq. ft.
Larger states with more robust urban areas such as Washington, D.C and California top the list of the top 5 most unaffordable. Hawaii is a bit of an outlier as its size and location restricts availability.
- Washington D.C. – 403 sq. ft.
- Hawaii – 418 sq. ft.
- California – 713 sq. ft.
- Massachusetts – 887 sq. ft.
- Colorado – 982 sq. ft.
Can You Afford a Home in 2018? How Big?
There is obviously a wide gap between what you get in Indiana versus what you can expect in California. Even among the most unaffordable cities there is a disparity. For the same amount of money you can get a home with twice the space in Massachusetts that you would in Washington, D.C.
Location matters, but so do other factors. California, for example, has some of the highest state taxes in the country. This is where City vs City can help!
Rather than relying on averages, City vs City takes a detailed look at the real cost of living in both your city and the city you’d like to move to. Input your income, expenses, and more to get a real look at what your cost of living will be, including those state and local taxes. You can even expand your search to other zip codes outside the city of your choice.
With City vs City, you can take a real look at the real cost of living in a given city and use that to make an informed decision regarding your next move.