The much hyped Amazon search is over and the winners announced. New York City and Arlington each won half of HQ2. Millennials need to take a page from Amazon’s playbook and conduct their own search for their best place to work and live. Many of the cities overlooked by Amazon deserve a close look by prospective first-time homebuyers (FTBs). These cities offer something that coastal markets currently can’t: affordable entry level homes.
A new study from the AEI Center on Housing Markets and Finance ranked the affordability of 50 large metropolitan areas in the U.S. for FTBs. Specifically, the study calculates the median home price to income ratio by using over 2.7 million FTB loan transactions to obtain actual 2017 home prices and incomes of borrowers.