Stay informed with free updatesSimply sign up to the Property sector myFT Digest -- delivered directly to your inbox.One of the seemingly-odd things about the US economy has been housing’s resilience to a massive upswing in interest rates. In reality, higher rates have helped property prices, because of the unique characteristics of the American mortgage market. Because of the prevalence of 30-year fixed rate mortgages in the US, most Americans locked in cheap monthly payments in the low-rate era. But if they moved now, they’d have to get a new...
To create its ranking, Creditnews used median income for married households in order to determine the percentage of unaffordable neighborhoods. This figure was compared against the typical value of a home in each neighborhood, with areas deemed unaffordable if the monthly mortgage payment was higher than 25% of a couple's household income.Of the 10 cities with the most unaffordable neighborhoods, four are in California. Two cities in the Golden State, Los Angeles and San Jose, were found to be 100% unaffordable for the average married couple household.The city of angels,...