Not our parent's market: How Tampa home buying power compares to the 1970s

Home buying power in Tampa plummeted about 64% from 1970 to 2022, per Axios' Rahul Mukherjee's analysis of a new RealtyHop study .

• Home buying power is the ratio of annual income against the average house price in 1970 (when boomers started buying starter homes) compared to 2022.

Why it matters: Buying a house is far less affordable today than it was for previous generations.

By the numbers: In 1970, the average Tampa-area home cost $11,000, with a median income of $7,678. By 2022, the city's home values soared to $333,200, but median income only reached $84,185.

• The rise in home value far outpaced the growth in median income in Tampa over the same period, leaving many priced out of the market.
• Meanwhile, home buying power in St. Pete dropped 41% from 1970 to 2022. The city saw a smaller increase in its home value and greater income growth than Tampa.

The big picture: The largest affordability gaps are along the West Coast, with all five of the least affordable cities in California.

• Meanwhile, the Midwest has remained the most affordable region for homebuyers. Of the 117 cities included in the study, Detroit is the only one where buying is easier today than it was 50 years ago.

Reality check: Mortgage rates were in the double digits in the 1970s and 80s. Today, they're hovering around 7%.

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