The starter home is becoming a myth for many first-time home buyers in the Sacramento, California, market.
The typical renter’s income of roughly $47,000 is less than half what it takes to afford the median-priced home in the area, according to a new analysis by Point2. That ratio is tied for 13th worst in the nation with Fresno, California, and Tuscon, Arizona — and places Sacramento in the same range as markets such as Seattle, Boston and Portland.
So what’s to blame? Median prices are falling throughout the region. However, skyrocketing mortgage rates have added hundreds of dollars to monthly payments (the average mortgage rate went above 7% last week for the first time in 20 years). There is plenty of inventory in the market, but buyers are being forced onto the sidelines because of the escalating monthly costs.
