El Paso is in Top 10 Least Affordable Cities (Fort Bliss, Cleveland: home builders, neighborhood)

[Gary Siete]

Housing: Top 10 Most And Least Affordable Cities

The National Association of Home Builders and Wells Fargo have put together an index of the most and least affordable metro areas. The index was created by calculating what percentage of a city's residents making the median income can afford a house in that city. Not too surprising — the Midwest offers a good value with Indianapolis topping the charts as the most affordable city in the US. New York, of course, is the least affordable, followed by San Francisco, which is no shock to anyone who has lived in, or even visited those two cities.
In order to qualify, each metro area had to have over 500,000 people.

Top 10 Least Affordable Cities

1. New York City, NY
2. San Francisco, CA
3. Nassau/Suffolk Counties, NY
4. Los Angeles, CA
5. Miami, FL
6. Santa Ana, Anaheim, Irvine, CA
7. El Paso, TX
8. Newark, NJ
9. Honolulu, HI
10. Seattle, WA

Top 10 Most Affordable Cities

1. Indianapolis, IN
2. Warren, Troy, Farmington Hills, MI
3. Youngstown, Warren, Boardman, OH-PA
4. Detroit, MI
5. Grand Rapids, MI
6. Syracuse, NY
7. Dayton, OH
8. Akron, OH
9. Cleveland, OH
10. Scranton, PA

[EnjoyEP]

Interesting.

El Paso actually has some of the best home prices in the nation still for a major sized city and the heating costs in the winter are next-to-nothing, so I consider it a terribly affordable place to potentially live.

However, I do see they were matching it up against median incomes, and incomes are in general lower in EP.

I tell you what though, if you do have a gig in EP where you are getting paid well, it is a helluva lot more affordable than many (most?) big/major sized cities in the US.

[Caltep]

My wife are making approximately the same combined income as we were in CA. Difference is in CA we couldn't afford a house and here we can and in a decent neighborhood as well. I'm sure folks unfamiliar with EP will see us in the same list as SF, LA, NYC and wonder why, especially if they research our home prices.

Originally Posted by EnjoyEP

Interesting.

El Paso actually has some of the best home prices in the nation still for a major sized city and the heating costs in the winter are next-to-nothing, so I consider it a terribly affordable place to potentially live.

However, I do see they were matching it up against median incomes, and incomes are in general lower in EP.

I tell you what though, if you do have a gig in EP where you are getting paid well, it is a helluva lot more affordable than many (most?) big/major sized cities in the US.

[br7or13]

I'm no economist, but I gotta cast some doubt on the methodology here. I've lived in Miami and N.Y./N.J. area, and there is no way it costs as much to live in E.P. as it does in these other areas. In terms of housing and food prices, E.P. is far less expensive. Maybe on the property tax end of things, I can see how E.P. creeps up there, but even then there is no personal income tax in Texas, so who F'ing knows?

[Six Foot Three]

On that list El Paso's median home price is $131,000 where all the other cities median home price is $300,000 and $400,000 a home so i'm a tad confused on this.

Big boost for housing affordability - Feb. 19, 2009

[Caltep]

But I think factoring in the median income makes it so. A $140,000 house here seems reasonable (or a bargain) to just about anyone across the U.S., especially if they make at least $50,000/year. But if your family income is maybe $20,000 or less/year (family of four), that $140,000 is a little less reachable as opposed to a family with $50,000. I don't think the study is saying this is comparing apples to apples, it's taking into account all the factors that make living in that specific area unaffordable. I will agree the cost of living in Miami or SF is not the same as EP. But as I said in my earlier post, if my combined income in the SF area cannot buy me a cr*** house and the same amount can get me a really good house, then there is your comparison. In fact, when I moved here, my salary was considerably less than my last CA salary (still sort of is) and we still managed to buy a house and maintain a similar standard of living. I'm probably less of an economist so this is my simplistic view.

[clashman]

Two words: PROPERTY TAXES

[EnjoyEP]

Originally Posted by Caltep

But I think factoring in the median income makes it so. A $140,000 house here seems reasonable (or a bargain) to just about anyone across the U.S., especially if they make at least $50,000/year.

And the thing is, the *quality* and/or *newness* and/or *size* of home that one can purchase in El Paso for $140,000 is STAGGERING compared to what that $140K will get you in other markets.

In Albuquerque, $140K will get you a mediocre house. In Denver, $140K will get you a fixer-up-er in generally so-so areas at best. In LA, $140K will get you a shack where you would fear for your life - literally. In El Paso, $140K will get you a brand new home in a decent neighborhood with 3 BRs, 2 BAs and near 2000 square feet. A palm tree or two in front to boot.

[EnjoyEP]

Originally Posted by clashman

Two words: PROPERTY TAXES

They are high in EP, absolutely, although this is somewhat offset by the lack of personal income tax there.

[1979]

Originally Posted by Gary Siete

Housing: Top 10 Most And Least Affordable Cities

This list looked very odd at first glance. First, I was wondering why Boston is not on the least affordable list, since that city has always been ridiculously unaffordable.

Quote: The National Association of Home Builders and Wells Fargo have put together an index of the most and least affordable metro areas. The index was created by calculating what percentage of a city's residents making the median income can afford a house in that city.

After thinking about it, this really confirms my point that El Paso is a city of minimum wage earners. Yes, there are some good jobs; but apparently far and few between, and perhaps, Fort Bliss residents are helping keep the city afloat. Even to purchase a home at $131,000 (assuming this is an accurate median price) takes a considerable amount of income, especially when you consider the enormous property tax residents here have to pay.