More Than Half of 200 Midwest Metros Turn Unaffordable as Mortgage Rates Top 7%
Updated
Updated · Yahoo Finance · Oct 11
More Than Half of 200 Midwest Metros Turn Unaffordable as Mortgage Rates Top 7%
3 articles · Updated · Yahoo Finance · Oct 11
Summary
By July, more than half of roughly 200 Midwest metro areas no longer met the affordability threshold that homeownership costs stay within 30% of median household income.
Mortgage rates above 7% and rising list prices in cities including Chicago, Milwaukee and Kansas City are driving the squeeze even as the broader US housing market remains sluggish.
Kansas City buyers like firefighter Peter Friedel say competition has intensified for even fixer-uppers, underscoring how a region once seen as a middle-class refuge has become harder to enter.
The shift is a sharp reversal from 2020, when virtually all Midwest metros were still considered affordable by Atlanta Fed data.
Housing costs could spill into November's midterms, with affordability pressure hitting four Midwest Senate toss-up states: Iowa, Kansas, Michigan and Ohio.