Higher mortgage rates drag housing affordability lower in Q2
In 77 additional markets, families fall into the cost-burdened tier, devoting between 31% and 50% of income to housing.
San Jose-Sunnyvale-Santa Clara, California, topped the severely burdened list, where 82% of a median-income family’s earnings are consumed by a typical home mortgage payment.
San Francisco-Oakland-Fremont followed at 71%, Urban Honolulu, Hawaii, at 70%, San Diego-Chula Vista-Carlsbad at 68%, and Naples-Marco Island, Florida, at 60%.
For low-income households in those five markets, the required income share ranges from 121% to 164%, figures that underscore the scale of displacement pressure in high-cost metros.
Relief is concentrated in the Midwest. Decatur, Illinois, remains the nation’s least cost-burdened market at 16%, followed by Elmira, New York (17%), Peoria, Illinois (18%), Springfield, Illinois (20%), and Davenport-Moline-Rock Island across Iowa and Illinois (20%).
