In a recent study, NAHB examines eight key housing statistics from the 2012 American Community Survey (ACS). This post takes a closer look at two of those statistics; the median household income and median value of owner-occupied housing units.
The key to housing affordability is that the market meets the needs of the people who provide services we depend on, such as teachers, police officers, firefighters, and health care workers. There are two critical components of housing affordability; income and housing costs.
According to the 2012 ACS, the median household income of owner-occupied housing in United States is $65,514. The metropolitan area where homeowners have the highest median income is San Jose-Sunnyvale-Santa Clara, Calif. at $115,297. The top employers in this metropolitan area include tech giants such as Cisco Systems, eBay, IBM, and Adobe Systems. Three of the top ten median homeowner income metropolitan areas are in California.
High income metropolitan areas tend to be in higher population areas. Eight of the top ten median homeowner income metropolitan areas have populations greater than 1 million.
There is also a relationship between income and home values. According to the 2012 ACS, the median value of owner-occupied housing in United States is $171,900. The metropolitan area with the highest median home value is San Francisco-San Mateo-Redwood City, Calif. at $719,800. Eight of the top ten metropolitan areas are in California.
Nine of the 10 metropolitan areas with the highest home values have homeownership rates well below the national figure. The national homeownership rate is 63.9 percent according to the 2012 ACS.
The metropolitan area with the lowest median home value is Brownsville-Harlingen, Texas at $75,700. The metropolitan areas with the lowest home values have homeownership rates that exceed or approach the national figure.
For more information, visit www.nahb.org