According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index, affordability in the United States is now at a 20 year high, with an incredible 75% of homes in the country being affordable to families earning the national median income of $64,200.
Even though homes are affordable to the majority of the population, and interest rates are at an all-time low, and the housing market is still being held back by constraints on credit and worries over the economy. In spite of this some housing markets in the country are beginning to stabilise and there are some signs of green shoots.
The most affordable area in the US is the Youngstown-Warren-Boardman area which is on the Ohio and Pennsylvania border. An amazing 94% of homes here are within reach of those earning a median income. Other areas showing high affordability include Lakeland-Winter Haven in Florida and Syracuse in New York.
All these factors make the US extremely attractive to investors, especially as the number of renters is rising.
There are signs that increasing numbers of first-time investors are choosing to dip a toe into the market, and while it is a good time to buy, those new to the property investing game should be aware of the potential pitfalls and should make sure they only invest in an area that they know reasonably well, and that they investigate the local rental market thoroughly before committing to their purchase.
While the market is good for investors, those who are unable to pay in cash are also facing problems finding funding. According to the National Association of Realtors, 19% of homes sold during May and June were sold to investors, up from 13% on the previous year.
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