How strained housing affordability is across the nation, as told by one map

ResiClub was on a limited content schedule for the July 4th week. Next week, we’ll resume our normal content cadence.

Today's newsletter is brought to you by Groundfloor!

Groundfloor powers fractional real estate investing for new and experienced investors. We've seen 10% annualized returns across our portfolio, and our award-winning platform allows you to see returns in just days (not years), with no fees. Join hundreds of thousands of others who have already invested over $1.3 billion in real estate debt through Groundfloor.

Groundfloor is open to accredited and non-accredited investors and qualifies all its opportunities through the S.E.C. offering more transparency than other platforms. With our Auto Investor account, you'll be automatically invested and diversified across dozens (even hundreds!) of projects immediately. Download the app or visit Groundfloor to set up an account today.

Around 52.3 million of the 134 million U.S. families reside in a home they don’t own. Among those renter/non-homeowner households, only 7.9 million, or 15.1%, can afford to buy an average-priced home in their local market given current mortgage rates, home prices, and incomes, according to a new analysis by Zillow economists.

ResiClub reached out to Zillow to get the analysis down to a regional level.

Among the 50 largest metro area housing markets…

These 5 markets have the lowest percentage of non-homeowner households who can afford to buy the average priced home in their market 👇

1. San Diego, CA (2.6%)

2. San Jose, CA (2.7%)

3. Los Angeles, CA (2.8%)

4. San Francisco, CA (3.7%)

5. Salt Lake City, UT (3.8%)

These 5 markets have the highest percentage of non-homeowner households who can afford to buy the average priced home in their market 👇

1. Pittsburgh, PA (25.6%)

2. Detroit, MI (23.1%)

3. St. Louis, MO (22.6%)

4. Oklahoma City, OK (22.5%)

5. Cleveland, OH (22.4%)

Click here to view an interactive version of the map below

“While roughly 7.9 million [non-homeowner] families are income mortgage-ready across the country, there is substantial variation across metropolitan areas. The share of mortgage-ready families varies from 25.6% in Pittsburgh to just 2.6% in San Diego,” wrote Zillow economists.

On Friday, the U.S. Bureau of Labor Statistics reported the latest jobs numbers. The data shows that the labor market is slowly softening in the face of spiked interest rates.

Unemployed workers in the U.S. 👇

June 2023: 5,997,000

June 2024: 6,811,000

Labor force in the U.S 👇

June 2023: 167,000,000

June 2024: 168,009,000

Unemployed workers / Labor force = Unemployment rate (U3) 👇

5,997,000 / 167,000,000 = 3.6%

6,811,000 / 168,009,000 = 4.1%

Unemployment rate 👇

June 2023: 3.6%

June 2024: 4.1%