Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Gold Surges on Stock Selloff - 18th Jan 19
Crude Oil Price Will Find Strong Resistance Between $52~55 - 18th Jan 19
Stock Market’s Medium Term is No Longer Bullish. It is Now Mixed - 18th Jan 19
SPX and Gold; Pivotal Points at Hand - 18th Jan 19
Fable Media Launches New GoWin Online Casino Affiliate Site in UK - 18th Jan 19
The End of Apple! - 18th Jan 19
Debt, Division, Dysfunction, and the March to National Bankruptcy - 18th Jan 19
Creating the Best Office Space - 18th Jan 19
S&P 500 at Resistance Level, Downward Correction Ahead? - 17th Jan 19
Mauldin: My 2019 Economic Outlook - 17th Jan 19
Macro Could Weaken After US Government Shutdown. What This Means for Stocks - 17th Jan 19
US Stock Market Indexes Reaches Fibonacci Target Zone – Where to Next? - 17th Jan 19
How 2018 Was For The UK Casino Industry - 17th Jan 19
Gold Price – US$700 Or US$7000? - 16th Jan 19
Commodities Are the Right Story for 2019 - 16th Jan 19
Bitcoin Price Wavers - 15th Jan 19
History Shows That “Disruptor Stocks” Will Make You the Most Money in a Bear Market - 15th Jan 19
What Will the Stock Market Do Around Earnings Season - 15th Jan 19
2018-2019 Pop Goes The Debt Bubble - 15th Jan 19
Are Global Stock Markets About To Rally 10 Percent? - 15th Jan 19
Here's something to make you money in 2019 - 15th Jan 19
Theresa May to Lose by Over 200 Votes as Remain MP's Plot Subverting Brexit - 15th Jan 19
Europe is Burning - 14th Jan 19
S&P 500 Bounces Off 2,600, Downward Reversal? - 14th Jan 19
Gold A Rally or a Bull Market? - 14th Jan 19
Gold Stocks, Dollar and Oil Cycle Moves to Profit from in 2019 - 14th Jan 19
How To Profit From The Death Of Las Vegas - 14th Jan 19
Real Reason for Land Rover Crisis is Poor Quality of Build - 14th Jan 19
Stock Market Looking Toppy! - 13th Jan 19
Liquidity, Money Supply, and Insolvency - 13th Jan 19
Top Ten Trends Lead to Gold Price - 13th Jan 19
Silver: A Long Term Perspective - 13th Jan 19
Trump's Impeachment? Watch the Stock Market - 12th Jan 19
Big Silver Move Foreshadowed as Industrial Panic Looms - 12th Jan 19
Gold GDXJ Upside Bests GDX - 12th Jan 19
Devastating Investment Losses Are Coming: What Is Your Advisor Doing About It? - 12th Jan 19
Things to do Before Choosing the Right Credit Card - 12th Jan 19
Japanese Yen Outlook In 2019 - 11th Jan 19
Yield curve suggests that US Recession is near: Trading Setups - 11th Jan 19
How Unrealistic Return Assumptions Are Ruining Your Stocks Portfolio - 10th Jan 19
What’s Next for the US Dollar, Gold, Stocks & Bonds? - 10th Jan 19
America's New Africa Strategy - 10th Jan 19
Gold Mine Production by Country - 10th Jan 19
Gold, Stocks and the Flattening Yield Curve - 10th Jan 19
Silver Price Trend Forecast Target for 2019 - 10th Jan 19

Market Oracle FREE Newsletter

Bitcoin Analysis and Trend Forecast 2019

Hardest US Housing Market Places to Live - Look Out Middle Class

Housing-Market / US Housing Aug 12, 2018 - 12:57 PM GMT

By: Harry_Dent

Housing-Market

In San Francisco, a household now needs an income of $188,000 to afford rent for the average two-bedroom house or apartment with 30% of the household income spent on housing.

The problem is that the median income is only $103,801.

Housing is 81% out of reach!

And this is true across the country as well.


It takes an hourly wage of $22.10 to afford the median two-bedroom apartment versus the actual median wage of $16.88.

That makes it 31% out of reach. And the median cost for a two-bedroom apartment three-times minimum wage.

The most expensive state is Hawaii at $36.16 compared to the $16.16 actual hourly wage earned, making it 123% out of reach.

Meanwhile, the lowest is Arkansas at $13.84 needed, and an actual hourly wage earned of $13.05. That is only 6% out of reach.

Then there’s Puerto Rico at only $9.24 an hour to afford that median two-bedroom versus $9.76 of actual wages.

Finally, an affordable place to live as a U.S. citizen.

The next two tables summarize a recent survey that ranked cities by the percentage of households that are cost-burdened by renting or owning houses.

This means that they spend over 30% of their income on housing.

They also have some good information on incomes and housing affordability.





The top five for cost burdens are San Francisco (55.9%), San Jose (54.7%), Oxnard/Thousand Oaks/Ventura (53.5%), San Diego (52.2%), and Honolulu (51.9%). Four of these are in California – no surprise.

And Hawaii has always been expensive.

The lowest out of these are Stockton (30.2%), Austin (30.7%), Baltimore (33.7%), Portland (33.9%), New Haven (34.2%), and Denver (34.8%). It jumps to 39%-plus from there.

Austin and Denver are rated high for attractiveness as well.

Housing for ownership is least affordable in San Jose at 10.9-times median income. Los Angeles comes in at 9.6, with San Francisco at 9.4, and San Diego at 8.1.

Honolulu is not quoted here on home prices, but other surveys put its price-to-income ratio at near 10 times, similar to San Francisco.

Conversely, the lowest home ownership rate is in Los Angeles at 47.4%, with both high prices and lower incomes.

Only Miami has lower.

Both of these high-cost rental cities have the lethal combination of expensive housing costs and modest median incomes.

New York is at 51.0%, with San Diego (52.1%), San Francisco (53.0%), and Honolulu (54.1%) all in the same range.

The most affordable price-to-income ratios for home ownership are in New Haven, Connecticut, at a fair 3 times as much, Baltimore at 3.4, and surprisingly, Bridgeport/Stamford at 3.6 times.

A painful housing correction is due to hit.

And it’s precisely the medicine the economy needs to allow the ‘American Dream’ to stay alive for the up-and-coming Millennial generation.

It’s us – the older Baby Boomers – that will feel the brunt of things if we don’t get out of the way.

Harry

http://economyandmarkets.com

Follow me on Twitter @HarryDentjr

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.

Copyright © 2018 Harry Dent- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Harry Dent Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules