A new study from Trulia shows that about 62 percent of homes for sale in the DC area are in reach of the middle class.
The study, which uses data from the rather large DC metro area, puts the region’s median middle class income at $88,865 and from there calculates that an affordable home would be priced at $441,000. Of the homes on the market in the area, about 62 percent fall at or below that price point, Trulia reported in the study released Tuesday. If you look at just DC proper, that percentage falls to 44 percent; if you are looking in Prince George’s County, it jumps to 85 percent.
Trulia relied on an affordability calculation that puts the monthly cost of homeownership at 31 percent or less of a household’s monthly income. The total monthly payment for the report includes the mortgage payment assuming a 20 percent down payment. The percentage of available homes to the middle class would be lower if a down payment of lower than 20 percent was used in the calculation.
Here are some other takeaways from the nationwide study, which calculated a different measure of “middle class” in each area:
- The majority of homes for sale in most U.S markets are within reach of the middle class.
- Over 80 percent of the homes for sale in Detroit and Cleveland are within reach of the middle class. In San Francisco, just 14 percent of homes for sale are considered affordable to the middle class.
- Of the top 10 least affordable markets in the country, seven are in California.
This article originally published at https://dc.urbanturf.com/articles/blog/trulia_dc_areas_middle_class_can_afford_homes_441k_and_under/8485.
Most Popular... This Week • Last 30 Days • Ever
In this edition of First-Timer Primer, we look into the question of how to determine ... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
Here's what you need to know about reporting profit made from the sale of your home.... read »
A Roth IRA is one of those accounts that people feel is totally off limits until you ... read »
The latest edition of What $1.5 Million Buys includes a Falls Chuch home reminiscent ... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
Why condo fees are high in some buildings and low in others can be a difficult questi... read »
Virginia's homebuyer assistance programs can seem complex. This edition of First-Time... read »
When sellers haven't quite lined up their next house before their settlement date com... read »
In this edition of First Timer Primer, we take a closer look at what you are actually... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro