Housing is perhaps the largest part of any household budget, so its affordability impacts every other part of an individual or family's life. How do you compute affordability anyway?
The standard formula that's often used simply compares the median price of a house with the metropolitan area's median income and voila, affordability as a percentage. It's handy because it allows metro areas across the country to be ranked for would-be relocators.
Chicago Agent Magazine broke down the rankings according to that formula and what the top three metros were, in order, Atlanta, Philadelphia and Phoenix. Chicago ranked fifth in order behind Houston while traditionally "expensive" markets like San Francisco and New York ranked low.
However, if you add in the costs of commuting, the ranks look entirely different according to Chicago Agent Magazine's analysis.
In that case, the top three metros for affordability are Philadelphia, Boston/San Francisco, and New York/Denver. Chicago follows in fifth and now, Phoenix and Atlanta are bringing up the rear.
At the very least, the analysis shows that when considering housing affordability, lifestyle should also be factored in as it would provide a more holistic view of the situation to potential buyers/movers.
For more, head here.
