This means a middle-class American wouldn’t be able to afford a median-priced home if following the advice of not spending more than 30% of income on housing, as the National Federation for Credit Counseling outlined.
The average home value in Austin is $539,099, down 4.6% over the last year, according to Zillow , but still too high for the middle-class thanks in part to the pandemic. This put the Austin market “on the map” per Tiffany Grana, real estate specialist with Nicole Kessler Group COMPASS .
“The shutdown proved to many that employees could be productive in an ‘out of the office’ setting — so people from all over the country decided to move to Austin — due to the lifestyle it offers. That generated a huge boom in 2021 and the first half of 2022,” Grana said.
In addition, high interest rates have also caused prices to increase, becoming too steep for many homebuyers. “We have been in an adjustment period ever since,” Grana added.
Perfect weather, good food, and endless fun things to do in LA make living in the city exciting, but the price of a home there puts financial pressure on the middle class.
“It’s like playing real estate roulette, where the middle class keeps getting nudged out of the game — unless you want a fixer-upper with ‘charm’ in the Valley.”
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Miami, Florida
Great beaches, beautiful weather, and no state tax make Miami attractive to many, but it’s becoming unaffordable.
“Once known for its laid-back vibe, Miami’s housing prices have shot up to a median of $600,000,” Charlie said. “The sunny skies are still inviting, but the real estate prices are not exactly middle-class-friendly anymore.”
At one time, Nashville was an affordable city to live in, but it’s becoming less budget-friendly for the middle class — the average house price now rests at $441,789 per Zillow . “Nashville, historically undervalued compared to similarly sized cities, has experienced tremendous home price appreciation in recent years,” Lacey Newman , affiliate broker with Compass Nashville and founder of Elevated Agents, said.
“An influx of new residents and strict regulations around increasing density keep inventory low and prices elevated despite interest rates,” she explained. “As a result, middle-class families often have to choose between staying in homes that may no longer suit their needs or moving farther outside the urban core than they’d prefer.”
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Stamford, Connecticut
Located an hour outside of NYC, Stamford has been an appealing option for commuters into the city and first-time homebuyers. Plus, it’s more “affordable than neighboring Greenwich,” said Suzette Kraus , Founder of SK Homes Team at Compass.
However, “The median value of single-family homes in Stamford is about $850,000, and it continues to rise,” she noted.
New Rochelle and White Plains, New York (Westchester County)
Real estate experts say finding affordable houses anywhere near NYC is getting harder.
“Living close to Manhattan has always been expensive, but there were always pockets, where the non-1%-ers could always afford to live in Westchester County,” Lauren Hurwitz , Licensed Realtor and founder and CEO of MediaHouse, told GBR.
She explained: “Over the years, cities like New Rochelle and White Plains have become fairly unaffordable to the middle class. Large suburban cities like these have always attracted a wide range of buyers. However, buying a house renovated in the last five to ten years with at least four bedrooms is going well above one million dollars in both highly desirable cities.”
According to Zillow , the average home price in White Plains is $751,314, up over 9% from last year. Hurwitz said, “The average home price in New Rochelle ten years ago was about $750,000. Now, we are looking at a minimum of $1.1 million for that same four-bedroom.”
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