How Hard is it to Score a Starter Home Here?
A new analysis by California-based firm John Burns Real Estate Consulting sheds light on the likelihood of attaining an entry level home in the Queen City. The study looked at 130 major housing markets throughout the U.S., Charlotte included. Their findings were used to determine what percentage can afford an entry-level home. What did they find?
The study found that 61% of Charlotte households can afford an existing entry-level home. This is only slightly below our market’s historical average of 65%. There are a lot of factors that go into making this determination, including what exactly qualifies as an entry-level home.
But what exactly IS an entry-level home?
In this case, a starter home in Charlotte looks like one that is priced 20% below the median home price. This is coupled with the ability to make a 5% down payment on a 30-year fixed-rate mortgage. Being that Charlotte is currently a seller’s market, and with rising home costs throughout the nation, finding that 20% cheaper unicorn is becoming harder and harder.
There is good news, though. Charlotte’s percentage of households who can afford an entry-level home is higher than the national average of 54%. It should come as no surprise that California claimed the spot with the lowest percentage of households who can afford a beginner home — 34%. Just 11% of households in San Francisco and 27% in Los Angeles can afford such a house.