Real Estate in Florida: a Four Part Blog. Part Three

By
Mortgage and Lending with Harper & Fabre

 

Affordability: Part Three

 

Supply and demand are metrics that unto themselves are very powerful pricing arguments. Having said that and holding Supply and Demand aside the next point is affordability. How affordable is the local real estate market?

 

Metro Orlando ranks ninth amongst the nation’s top10 affordable real estate markets when comparing ownership versus the rental market.

 

Rank

City

Own vs. Rent Ratio

Annual Ownership Costs

Annual Rent Cost

Climate

State Income Tax

1

Detroit, MI

94%

$8,519

$9,072

Very Cold

Yes 4.75%

2

Pittsburgh, PA

97%

$8,947

$9,252

Cold

Yes 3.07%

3

Rochester NY

113%

$9,523

$8,448

Brrrr!  Very Cold

Yes 8.82%

4

Memphis, TN

114%

$8,593

$7,524

Moderate

Yes  but very Complicated

5

Tampa, FL

115%

$10,823

$9,444

Mostly Warm

NO!

6

Cleveland, TN

119%

$9,934

$8,364

Moderate

Yes  but very Complicated

7

Dayton, Ohio

119%

$8,420

$7,056

It gets cold

Yes 5.925%

8

Columbia, SC

123%

$9,855

$8006

Moderate

Yes 7%

9

Orlando, FL

124%

$12,107

$9,756

Mostly Warm

NO!

10

Dallas, TX

124%

$12,107

$9,756

Moderate

NO!

 

 The primary question for affordability becomes; can the “average Joe” in any given market afford to buy a home? With the low interest rates and a 3.5% down payment on a $125,000 mortgage payable over 30 years commands a payment of $614.92 a month for 30 years. This means that a person(s) making $30,000 per year with good credit and little debt qualifies for this mortgage*. Gee, isn't that an ”average Joe”?

 

*notice: this scenario has been configured as an example only, and does not constitute a valid offer for financing.

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Florida

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
7,743

Manny Fabre

Ask me a question
*
*
*
*