Where are the affordable homes?

It should be easier to find an affordable home than to discover buried treasure. But for many homebuyers – especially for the first time – this is not the case.

The lack of affordable housing is a persistent problem in the housing market. In the first quarter, inventories rose 2.4% over the previous year, according to the National Association of Realtors. But it still remains well below normal and it is annoying for homebuyers.

In the United States, TODAY has asked Trulia to review the 50 largest metropolitan areas in the United States and to identify postal codes when housing is affordable relative to the median income of the metro.

Here is the encouraging news for buyers.

In 43 metropolitan areas, at least half of the households in the majority of postal codes were considered affordable. There were 604 postal codes – or 6.8% of all postal codes – where all households were affordable. There were only 288 postal codes, or 3.3%, where no home was considered affordable.

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"It's interesting to note that so many postal codes fall into one of these extremes," said Cheryl Young, senior economist at Trulia.

What makes an zip code affordable?

According to Young, neither the age of the housing stock nor the distance from downtown seem to be determinants of affordability.

"It's probably because there can be a premium to live near the center of a subway as well as a premium to live in a paved suburb," said Young. [while] old homes can reduce the value of homes, there are also high-value neighborhoods with well-maintained old estates and homes. "

Trulia did not look for other factors that could determine the usefulness of a postal code and, consequently, the value of the housing inventory, such as the performance of nearby schools, the proximity of businesses and restaurants, and access to the main lines of communication.

What is affordable?

Trulia took the current value of all homes in the 50 largest metropolitan areas and calculated how much median income could afford with a postal code. Housing was considered affordable if 30% or less of the metropolitan area's median monthly income was allocated to the mortgage payment.

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To find the share of affordable housing on the market, Trulia calculated the maximum amount that the median income could allocate to a mortgage payment. The calculations took into account a 20% down payment and the monthly mortgage payment also included property insurance and taxes.

It is important to note that many homebuyers, especially first-time homebuyers, contribute for less than 20% to the purchase of their home. This would increase their monthly mortgage payment on the same house purchased with 20% off. In addition, these buyers should pay private mortgage insurance, another monthly cost. The number of postal codes with affordable homes would also decrease for these buyers, said Young.

Most affordable ZIP codes

In the United States, TODAY has assessed the affordability of a metropolitan area based on the percentage of postal codes, where at least half of the homes are affordable for the median income of that area. USA TODAY also used Trulia's data to determine how many postal codes were 100% affordable and how many had no affordable home for the median income.

The most affordable metro areas

Indianapolis

Postal code share where at least half of the homes are affordable96.7%

Share postal codes where none of the dwellings are affordable: 0.8%

Postal code share where all homes are affordable: 13.8%

Pittsburgh

Postal code share where at least half of the homes are affordable95.8%

Share postal codes where none of the dwellings are affordable: 0.5%

Postal code share where all homes are affordable: 22.4%

The City of Oklahoma

Postal code share where at least half of the homes are affordable95.4%

Share postal codes where none of the dwellings are affordable: 0%

Postal code share where all homes are affordable: 6.5%

Cincinnati

Postal code share where at least half of the homes are affordable94.9%

Share postal codes where none of the dwellings are affordable: 0.6%

Postal code share where all homes are affordable: 8.3%

Birmingham, Alabama

Postal code share where at least half of the homes are affordable94%

Share postal codes where none of the dwellings are affordable: 0%

Postal code share where all homes are affordable: 12.8%

The least affordable subways

Los Angeles

Postal code share where at least half of the homes are affordable6.6%

Share postal codes where none of the dwellings are affordable: 15.9%

Postal code share where all homes are affordable: 0%

San Jose, California

Postal code share where at least half of the homes are affordable9.5%

Share postal codes where none of the dwellings are affordable: 19%

Postal code share where all homes are affordable: 0%

San Diego

Postal code share where at least half of the homes are affordable: 12%

Share postal codes where none of the dwellings are affordable: 8%

Postal code share where all homes are affordable: 0%

San Francisco

Postal code share where at least half of the homes are affordable12.4%

Share postal codes where none of the dwellings are affordable: 23.5%

Postal code share where all homes are affordable: 0%

New York

Postal code share where at least half of the homes are affordable35%

Share postal codes where none of the dwellings are affordable: 3.2%

Postal code share where all homes are affordable: 9.5%

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