Amid record low inventory, San Jose and San Francisco among least affordable cities to find a home

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Amid record low inventory, San Jose and San Francisco among least affordable cities to find a home
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How tough is it to afford a home in this wild housing market? A lot depends on how much you earn and how many houses are for sale where you live.

are creating an affordability crisis for homebuyers, according to a new report from the National Association of Realtors.

Also hurt are homebuyers earning between $75,000 and $100,000. This group, the report found, can afford a maximum home price of $433,480. Researchers determined these prices by making some assumptions, including that the buyer is not spending more than 30% of their income on housing and that the purchase is financed with a 30-year fixed-rate mortgage.

Des Moines, Iowa, has the most homes for sale for this income bracket with one affordable listing for every 78 households. It is followed by Detroit; Augusta, Georgia; Youngstown, Ohio and Scranton, Pennsylvania. “In general, an increase in salary makes housing more affordable to a buyer,” said Danielle Hale, Realtor.com’s chief economist. “But due to the reductions in inventory over the last few years, today’s buyers in large tech markets can actually afford a smaller number of homes than they could two years ago, despite an uptick in wages.”The report also found that a persistent racial homeownership gap exists in America.

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