Sacramento nearly flunks when it comes to home affordability, according to one study.
Middle-income families are unable to afford the median-priced home in many of the country’s 25 largest cities, said Interest.com.
“In those cities with the least affordable housing, the failure of paychecks to keep up with rapidly rising housing costs is reaching crisis proportions,” according to Mike Sante, Interest.com’s managing editor.
San Francisco was the least affordable city in the Interest.com study, earning a solid F grade. The median-earning family fell 45.64 percent short of the income needed to afford the city’s median home price of $769,000. A household earning the city’s median income could only afford a home worth $355,703.
In Sacramento, which earned a D in the study, the median-earning family fell 7.5 percent short of the income to afford the median home price of $271,000.
An affordability grade of C means that someone making the median income can afford the median-priced home.
Other cities getting bad affordability grades: Los Angeles, San Diego, New York City, Portland, Denver, Seattle and San Antonio.
Among the most home affordable cities were Minneapolis, Atlanta, St. Louis, Pittsburgh and Detroit.
In Minneapolis, which received a B, the median-earning family made 23.22 percent more than they needed to afford a median-priced home.
The study includes data on median home prices and incomes, average property taxes, consumer debt and mortgage rates. No city earned an A grade.
Call The Bee’s Bill Lindelof, (916) 321-1079.