ATLANTA -- Home ownership is well within reach for 75% of middle-class households, according to a new study conducted by real estate company Trulia. Economist Jed Kolko says home ownership affordability varies hugely across the country.
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To determine affordability, Kolko looked at all of the homes for sale across the U.S. For every home, he decided affordability based on whether the monthly payment was less than 31% of the metro median household income. The percentage of homes within that level was considered the amount of affordable homes for middle class households.
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The most affordable city is Akron, Ohio. Eight-six percent of homes are affordable for middle class households. San Francisco is the least affordable city with only 14% of homes within reach of middleclass households. Those more expensive homes were also some of the smallest in the country with a median size home only 1,000 square feet.
Atlanta fares better than most metro areas. The median income here is $54,628. The maximum affordable home price is 266,000. In October 2013, 75% of homes for sale fell within those affordable guidelines. But, the study also shows that number is less than it was just a year ago. In 2012, 84% of homes for sale were affordable for middle-class households.
What do you think? Are homes in Atlanta affordable for middle-class families?