By Julie Schmit and Meghan Hoyer | USA TODAY
Middle-class buyers are seeing fewer homes for sale that they can afford given rising home prices, higher interest rates, flat incomes and fewer foreclosed homes on the market.
Middle-class home buyers are finding fewer homes on the market that they can afford.
In 14 of the top 100 metropolitan regions, more than half of the for-sale homes earlier this month were out of reach for middle-class buyers, show data from real estate tracker Trulia.
A year ago, that was true in just eight of the leading metros, the data show.
Rising prices, higher interest rates, flat incomes and fewer foreclosed homes for sale are combining to limit choices for the middle class, says Jed Kolko, Trulia chief economist.
Trulia considers homes affordable for middle-class buyers if their total monthly payment — after a 20% down payment and including taxes and insurance — is less than 31% of their metro area’s median household income.
If you’d like to discuss real estate matters, contact Rose Law Group founder Jordan Rose, jrose@roselawgroup.com
