A new report compiled a list of major cities labeled as “impossibly unaffordable.”
Full Video Transcript Below:
CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Investors headed into the weekend in a pensive mood after a week filled with stock market records, tamer-than-expected inflation data, and a Federal Reserve that’s teeing up for at least one interest rate cut later this year.
Meanwhile, the University of Michigan’s consumer sentiment index for early June saw a deterioration due to inflation concerns. Wall Street will get a bigger consumer update on Tuesday with the release of May retail sales figures.
The somber mood of the consumer can also be pinned on surging housing costs – and now there’s a list of cities that have been deemed “impossibly unaffordable.”
According to the annual Demographia International Housing Affordability Report, California has the dubious distinction as the state with the most U.S. cities where home prices are insane. San Jose, Los Angeles, San Francisco, and San Diego make the list. Honolulu rounds out the top 10 for U.S. cities.
The report blames “the escalation of land costs. As land has been rationed in an effort to curb urban sprawl, the excess of demand over supply has driven prices up.”
To determine which cities are “impossibly unaffordable,” the authors came up with an affordability ratio based on the median home price of a city divided by the gross median household income.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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