Homes across the country are either extremely affordable or completely out of reach for the average working person. There are fewer and fewer each year that are right on the line. Take these two extremes:
Syracuse, NY: Median home price is $94,000
San Francisco, CA: Median home price is $815,000
Here’s what these extremes tell us. In San Fran only 13% of homes were affordable by the average income of $100k. While in Syracuse 94% of homes are affordable by the average wage earner.
That’s a shocking gap! And it’s getting wider!
Supplies are limited in the most expensive cities and housing is already pretty densely packed. Nationwide the average is about 65% affordability for housing.
This is something you really need to keep in mind as you work through real estate investing. Profits can be made and homes can be sold. But not always in the same place.