Loss Of Real Estate Purchasing Power Around US – But Staten Island, Queens Brooklyn Bucking This Trend, Seeing Increased Buying Power

• Home seekers in Staten Island saw increases in both buying power and living space. They gained $5,624 and 28 sq. ft. more compared to last year.
• Homebuyers in Queens and Brooklyn can also afford up to $9,476 more for their dream home.
• Of all the New York City boroughs, buyers in the Bronx have it worst. Those looking for a home can now afford $5,046 less compared to 2022.
• In terms of space, Queens and the Bronx are the only ones where homebuyers can afford less than a year ago.
• Overall, buyers in NYC gained $7,862 in purchasing power.

As mortgage rates reach a two-decade high, homebuyers’ budgets can no longer buy what they could last year, forcing them to sacrifice up to 3 bedrooms’ worth of square footage in their dream homes. We explored this decline in purchasing power in the country’s 100 largest cities, and here’s what we found: 

• In 12 major cities, led by Lincoln, NE, Oklahoma City, and Tulsa, OK, home seekers saw a loss in buying power ranging from $20,000 to over $30,000.   
• Homebuyers in 61 large cities, including Detroit, MI, Tulsa, OK, and Wichita, KS can now afford less living space than they did one year ago. Some experienced a loss equivalent to one, two, or even three bedrooms.  
• However, there’s a silver lining. In cities like Anchorage, AK, Jersey City, NJ, and Boise, ID, homebuyers gained over $30,000 in purchasing power. 
• In terms of living space, Memphis, TN, Buffalo, NY, Boise, ID, and 4 other big cities saw improvements, with buyers being able to get over 100 sq. ft. more space than in 2022. 

Check out the full set of data and accompanying visuals highlighting the 2023 vs. 2022 changes in purchasing power and living space: https://www.point2homes.com/news/us-real-estate-news/us-mortgage-rates-eat-away-at-affordability.html 

Banner Image: Buying power. Image Credit – Igal Ness