McAllen has once again in another Top 10 list. This time, it lands in the number five spot for places where middle-class Americans can buy a home.
Realtor.com recently set out to find the metropolitan areas where a middle-class family could find the most home they could afford. In McAllen, approximately 60 percent of homes available in the area are priced for a middle-class homebuyer.
“Homeownership is the American dream,” said McAllen Mayor Javier Villalobos. “McAllen has created a community that is welcoming, inviting and affordable for families of every income level. Middle-class families are the backbone of the economy and help spur growth and development, while demanding an affordable quality of life. McAllen offers that and so much more.”
Based on an annual income of $72,000, the website estimated an average home price up to $280,000 for a middle-class household. This is about 38 percent less than the national median price of $450,000 in June. In McAllen, the median home price is $260,000.
The team calculates homeowners should spend no more than 30 percent of their annual income before taxes on housing. On $72,000, this amounts to annual housing costs of $21,600, or $1,800 a month.
“Middle-class households are going to have a better shot of making the math work in areas with more affordable housing, which tend to be found in the South and Midwest,” says Danielle Hale, chief economist of Realtor.com.
This amount assumes that buyers could snag a 30-year fixed-rate mortgage with a 10-percent down payment and a 5.25-percent mortgage interest rate. They also factor in private mortgage insurance (required on down payments below 20 percent) and other taxes and insurance.
Finally, Realtor.com listings in April were examined to find the 100 largest metropolitan areas with the greatest share of homes at or below $280,000 for sale.
McAllen landed at number five on the list, with a median home price of $260,000 and 58.8 percent of home prices affordable for middle-class buyers.
The Top 10 Listing Is As Follows:
- Youngstown, Ohio
- Scranton, Penn.
- Syracyse, NY
- Wichita, Kan.
- McAllen, Texas
- St. Louis, Mo.
- Detroit, Mich.
- Little Rock, Ark.
- Tulsa, Okla.
- Louiseville, Ky.