Region ranks 5th in affordable housing
- Published Date: Aug 24, 2010 7:07 AM
- Last Updated: Aug 24, 2010 7:14 AM
The Buffalo Niagara region continues to stake its claim as one of the nation's most-affordable housing markets.
Based on median sale price and median income, the region ranked fifth among large metro areas on the quarterly "Housing Opportunity Index" created by the National Association of Home Builders and Wells Fargo.
The region earned an "affordability" score of 93.3 percent, meaning that percentage of new and previously occupied homes sold from April through June were considered affordable for a family earning the region's median income.
In Buffalo Niagara, the median sale price was $112,000, meaning half the homes sold for less than and more than that amount, according to the NAHB and Wells Fargo. The median family income was $63,700.
The survey does not take into account property taxes, often cited as a negative factor offsetting the region's relatively inexpensive housing.
No. 1 on the most-affordable list for the second quarter was Syracuse, with a rating of 97.2 percent. Second was Indianapolis, which had held the No. 1 spot for five straight years. Upstate New York was well represented on the list, with Rochester at No. 10.
John Leonardi, chief executive officer of the Buffalo Niagara Association of Realtors, said a mix of factors has contributed to the region's reputation as an affordable housing market.
The Buffalo Niagara market never experienced the housing "bubble" that eventually burst in many markets, but followed a slow-and-steady growth path, he said. And the region's unemployment rate has tended to stay below the national average, keeping the labor market more stable, he said.
"I honestly think the fact we preceded the rest of the country in going through some hard economic times made our market that much stronger," Leonardi said.
The housing market ranked least affordable was New York City/White Plains/Wayne, N.J., where only 20 percent of the homes sold were considered affordable for families earning the area's median income of $65,600.
In measuring affordability, the NAHB says it assumes a family can afford to spend 28 percent of its gross income on housing. That share of median income is divided by 12 to create a monthly figure.
Nationwide, the Housing Opportunity Index indicated 72.3 percent of all new and previously occupied homes sold in the second quarter were affordable for families earning the national median income of $64,400. The index was close to its record high of 72.5 percent, set in the first quarter of 2009.
Buffalo Niagara's score of 93.3 percent was the best for the region in quarterly data going back to the start of 1999. The region ranked No. 1 on the index in the second quarter of 2005.
Along with other quality-of-life assets, Buffalo Niagara's affordable housing market can help make the region more attractive to expanding businesses, Leonardi said.
"We've got to do a better job of getting the word out there," he said.
Based on median sale price and median income, the region ranked fifth among large metro areas on the quarterly "Housing Opportunity Index" created by the National Association of Home Builders and Wells Fargo.
The region earned an "affordability" score of 93.3 percent, meaning that percentage of new and previously occupied homes sold from April through June were considered affordable for a family earning the region's median income.
In Buffalo Niagara, the median sale price was $112,000, meaning half the homes sold for less than and more than that amount, according to the NAHB and Wells Fargo. The median family income was $63,700.
The survey does not take into account property taxes, often cited as a negative factor offsetting the region's relatively inexpensive housing.
No. 1 on the most-affordable list for the second quarter was Syracuse, with a rating of 97.2 percent. Second was Indianapolis, which had held the No. 1 spot for five straight years. Upstate New York was well represented on the list, with Rochester at No. 10.
John Leonardi, chief executive officer of the Buffalo Niagara Association of Realtors, said a mix of factors has contributed to the region's reputation as an affordable housing market.
The Buffalo Niagara market never experienced the housing "bubble" that eventually burst in many markets, but followed a slow-and-steady growth path, he said. And the region's unemployment rate has tended to stay below the national average, keeping the labor market more stable, he said.
"I honestly think the fact we preceded the rest of the country in going through some hard economic times made our market that much stronger," Leonardi said.
The housing market ranked least affordable was New York City/White Plains/Wayne, N.J., where only 20 percent of the homes sold were considered affordable for families earning the area's median income of $65,600.
In measuring affordability, the NAHB says it assumes a family can afford to spend 28 percent of its gross income on housing. That share of median income is divided by 12 to create a monthly figure.
Nationwide, the Housing Opportunity Index indicated 72.3 percent of all new and previously occupied homes sold in the second quarter were affordable for families earning the national median income of $64,400. The index was close to its record high of 72.5 percent, set in the first quarter of 2009.
Buffalo Niagara's score of 93.3 percent was the best for the region in quarterly data going back to the start of 1999. The region ranked No. 1 on the index in the second quarter of 2005.
Along with other quality-of-life assets, Buffalo Niagara's affordable housing market can help make the region more attractive to expanding businesses, Leonardi said.
"We've got to do a better job of getting the word out there," he said.
© The Buffalo News
