This city is quickly becoming the least affordable place to own a home outside of California
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from: Fareeha Rehman, Nexstar media cable
Posted: Aug 14, 2021 / 3:33 PM EDT
Updated: Aug 14, 2021 / 3:33 PM EDT
SAN FRANCISCO (KRON) – A recent Zillow report predicts that several cities will become even less affordable for homeowners within a few months.
The report says Austin, Texas, will be the least affordable major US homebuyer city by December, if you take all California locations out of the equation.
“By December, even if mortgage rates stay the same in the future, Austin homebuyers should be ready to spend 30.1% of their income on a mortgage – over the 30% threshold on the home mortgage,” the report said. “The only markets that will be less affordable than Austin by the end of the year are all in typically expensive California: Riverside, San Diego, Los Angeles, San Jose, and San Francisco.”
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Right now, Austin is still cheaper than three other big markets for homebuyers, but the Texan capital is expected to overtake Seattle, Miami and NYC in the coming months, the Zillow report predicts.
Zillow’s data also suggests that Austin is getting more expensive as apartment hunters flee the more expensive California markets to Austin, where home prices are generally lower. According to Zillow’s April 2021 Relocation Report, Austin was a top destination for residents who moved from San Francisco between March 2020 and January 2021.
This migration from the Bay Area, sometimes referred to as the “Bay Area Exodus,” also drew buyers to Phoenix, Arizona and Charlotte, North Carolina. Along with Austin, these three markets saw the highest net inbound movements in the first 11 months of 2020.
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With the anticipated increases in Austin apartment hunters in the coming months, Zillow recommends the local government to ease the costly burdens of current residents by easing zone restrictions and making it easier to build more high-density homes such as townhouses and condos.
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