The cost of buying a home, when compared to income, varies dramatically across the country. Most analyses detail where it is most affordable to buy, but for many people it is a function of where it costs too much.
To answer the question where housing costs are the most expensive when compared to income, RealtyTrac.com analyzed U.S. markets — as reported by Realtor.com Do realize that in many markets for housing, such as those in New York City, the person may work in Manhattan but live in Brooklyn or Long Island, for example. Income and housing costs may not sync given the ability to commute.
So where are the least affordable housing markets in the U.S. in relationship to income? In several of these markets the median home payment is greater than median income. Remember that the general rule is that the maximum payment for principal, interest, taxes and insurance is 28 percent of pretax income. Imagine living in a market, such as Brooklyn, New York, where the median monthly payment for a home is 121 percent of average income.
To read the article click http://www.realtor.com/news/trends/he-most-unaffordable-place-to-live-in-america-is/
Quit obviously housing affordability, for many, is not a component of why they live where they live.
As an economist, affordability to me is important and impacts where I reside.
Ted