All Star Home analyzed the latest numbers from the U.S. Census Bureau to reveal which U.S. cities are the most “house rich.” In these areas, homes are affordable with high homeownership rates.
From coast to coast, there are a handful of cities that stand out due to their affordable housing and high ownership rates, making their residents “house rich,” while other cities measure poorly for their high cost of living and lower homeownership rates.
To determine which of the U.S. major cities are most “house rich,” All Star Home analyzed the 25 most populated cities by comparing the median value of owner-occupied housing units and the median household income in each city to yield a home-value-to-income ratio. The ratio was then adjusted by factoring in the rate of homes not occupied by their owners to account for the actual level of home ownership in each city. A low score indicates that the area is “house rich,” meaning housing is not only affordable but the majority of residents also live in the homes they own.
Among the 25 most populous U.S. cities, Phoenix ranks No. 10 on the list of the most “house rich” cities. Phoenix has a median occupied home value of $277,700 and a median household income of $64,927, resulting in a home-value-to-income ratio of 4.28 and an overall “house rich” score of 1.8777. Phoenix also has a high owner-occupied housing rate of 56.1%.
In comparison, El Paso, Texas, the No. 1 “house rich” city, has a 59.8% owner-occupied housing rate and a home-value-to-income ratio of 2.68, while Los Angeles, Calif., the least “house rich” city, has a 36.9% owner-occupied housing rate and a home-value-to-income ratio of 10.12.
All Star Home also went on a quest to find the nation’s most “house rich” cities overall. While Phoenix ranks among the nation’s most populous “house rich” cities, Buckeye, Ariz. ranks No. 2 among the most “house rich” U.S. cities overall, right behind Davie, North Carolina. Buckeye has an extremely high owner-occupied housing rate of 84.10% and a low home-value-to-income ratio of 3.15, resulting in a “house rich” score of 0.5016.
Read the full report here to find out the “house rich” score of your city.
