Grand Rapids Metro in Top 10 Affordable Homes Market

[GRDadof3]

In the 2nd Annual Demographia International Housing Affordability Survey, Grand Rapids Metro Area ranked in the Top 10 for most affordable markets. They use a "median multiple" which calculates median income vs. median home price.

I posted this in the job market thread, but thought a separate thread would be awright. Especially with GR not being a "red hot housing market" over the past couple of years, housing prices are not skyrocketing out of the reach of most families. Anyone not from this area finding housing prices and "buying power" to be better than other markets?

There was THIS artcile in the Press about what a million dollars will buy in West Michigan.

[peaceloveunderstanding]

I read somewhere that even though housing is affordable, it's overvalued. That's pretty interesting considering how low prices are.

[GRDadof3]

I read somewhere that even though housing is affordable, it's overvalued. That's pretty interesting considering how low prices are.

Hmm, I really had to search that list to find Grand Rapids, although I do remember this CNN report back from January. But I think CNN was mainly saying most of the whole country was overvalued. As any rankings, it probably depends on who is doing the ranking.

[egrguy]

tons of amazing stats, what a great find grdad!

Table 5, which shows all affordable housing is in the US or Canada whereas the rest of our english speaking breathren all have unaffordable housing.

Also, Figure 7 is interesting in that in 1995 in which no US market is severely unaffordable, one market seriously unaffordable and about 6 were moderately unaffordable out of 67 markets. Compared to 2005 where roughly 20 US markets are severely unaffordable, leaving only 20 affordable markets, a drop in nearly 30 from ten years ago.

It seems like the reasoning the study as is the use of land rationing. I wonder how long GR will remain an affordable market?

[tamias6]

I know that California is a cost of living nightmare. But I'm suprised to see NYC only make number 8 on the 10 most Unaffordable housing markets. I'd figure NYC would top LA on that list. Anyway as for GR, I think a struggling GRPS and a sagging statewide economy are combining forces to keep GR housing prices in check.

[MJLO]

I know that California is a cost of living nightmare. But I'm suprised to see NYC only make number 8 on the 10 most Unaffordable housing markets. I'd figure NYC would top LA on that list. Anyway as for GR, I think a struggling GRPS and a sagging statewide economy are combining forces to keep GR housing prices in check.

yeah but that study is representative of GR metro not just the city itself. A struggling GRPS would have little affect on the price of a home in Comstock Park. Save perhaps to make it a little more desireable.

[francishsu]

I know that California is a cost of living nightmare. But I'm suprised to see NYC only make number 8 on the 10 most Unaffordable housing markets. I'd figure NYC would top LA on that list. Anyway as for GR, I think a struggling GRPS and a sagging statewide economy are combining forces to keep GR housing prices in check.

The median income factor throws me off, as I don't have a faint idea of what those values are for the cities. It could be that the median income of NYC is substantially higher than LA. I would have guessed San Francisco being up at the top when not considering local median income.