CHARLOTTE, N.C., Aug. 16, 2019 /PRNewswire/ -- Town life is
often stereotyped as simple, idyllic and inexpensive when compared
with big-city life — but this doesn't always ring true. In fact,
there are quite a few instances where towns are even more expensive
than the cities they're near. To look at how expensive small-town
life can get, LendingTree®, the nation's leading online loan
marketplace, ranked the 50 towns in the
United States with the most expensive median home values.
Our study also looks at the median income in these towns to
determine how attainable homeownership is for the average person
living there. What we found: The towns with the most expensive home
prices are unaffordable to median income earners who live in those
areas.
Key Findings
- Vineyard Haven, Mass.,
Summit Park, Utah, and
Breckenridge, Colo., are the three
most expensive towns in the country. Each of these towns
is known for its proximity to natural features like mountain ranges
or the ocean. While high levels of wealth tend to pool in these
towns, the majority from these areas make an income well under the
national household average.
- The majority of the towns featured in this study are
unaffordable for the median income earner living in
them. Both renting and owning a home are out of reach for
median income earners in 42 of the 50 towns looked at in this
study. This suggests that many people who work in the towns
featured in these studies don't necessarily live there, and instead
commute.
- As our study makes clear, living in a small town does not
necessarily make the cost of living more affordable. Many
people living in the towns featured in our study would have an
easier time affording a home in a major metropolitan area than in
their current area. That being said, some of these towns are still
relatively affordable like Los Alamos,
N.M. or Gillette, Wyo.
No. 1: Vineyard Haven,
Mass.
- Total population: 17,321
- Median individual income: $39,045
- Median home value: $674,600
- Affordable housing costs for a median income earner:
$911
- Calculated mortgage payment for a median priced home:
$2,767
- Median rent payment: $1,441
- Home affordability deficit: -$1,856
- Rent affordability deficit: -$530
No. 2: Summit Park, Utah
- Total population: 41,349
- Median individual income: $41,654
- Median home value: $558,300
- Affordable housing costs for a median income earner:
$972
- Calculated mortgage payment for a median priced home:
$2,290
- Median rent payment: $1,230
- Home affordability deficit: -$1,381
- Rent affordability deficit: -$258
No. 3: Breckenridge,
Colo.
- Total population: 31,004
- Median individual income: $31,611
- Median home value: $547,700
- Affordable housing costs for a median income earner:
$738
- Calculated mortgage payment for a median priced home:
$2,246
- Median rent payment: $1,343
- Home affordability deficit: -$1,509
- Rent affordability deficit: -$605
For the full detailed list and methodology, please visit
https://www.lendingtree.com/home/mortgage/most-expensive-towns-in-america/.
Methodology
Data for this comes from the 2017 American Community Survey (the
most recent survey which has the data necessary to perform this
study). For the purposes of this study, LendingTree analysts used
micropolitan level data to approximate town level data. When
determining affordability, it is assumed that an income earner will
be able to afford a 20% down payment on the median home value in
the respective area, with a mortgage loan with a rate of 4.6% (the
average rate offered to Americans). By using that data, the likely
monthly payment and down payment for a median-priced home in a
given micropolitan area was calculated. The "affordable" monthly
mortgage payment is based on the "28% rule," which says that a
person should not spend more than 28% of their annual gross salary
on yearly costs related to housing.
By subtracting the monthly housing payment that is affordable to
an income earner in the geographies highlighted in our study from
the calculated housing payment that would be required to purchase a
home valued at the median level, we are able to determine whether
or not an average townsperson can afford to purchase a home in the
town that they live in.
About LendingTree
LendingTree (NASDAQ: TREE) is the
nation's leading online marketplace that connects consumers with
the choices they need to be confident in their financial decisions.
LendingTree empowers consumers to shop for financial services the
same way they would shop for airline tickets or hotel stays,
comparing multiple offers from a nationwide network of over 500
partners in one simple search, and can choose the option that best
fits their financial needs. Services include mortgage loans,
mortgage refinances, auto loans, personal loans, business loans,
student refinances, credit cards and more. Through the My
LendingTree platform, consumers receive free credit scores, credit
monitoring and recommendations to improve credit health. My
LendingTree proactively compares consumers' credit accounts against
offers on our network, and notifies consumers when there is an
opportunity to save money. In short, LendingTree's purpose is to
help simplify financial decisions for life's meaningful moments
through choice, education and support. LendingTree, LLC is a
subsidiary of LendingTree, Inc. For more information, go to
www.lendingtree.com, dial 800-555-TREE, like our Facebook page
and/or follow us on Twitter @LendingTree.
MEDIA CONTACT:
Megan
Greuling
Megan.greuling@lendingtree.com
704-943-8208
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SOURCE LendingTree