RealtyTrac, a source for comprehensive housing data, released a joint analysis with Down Payment Resource which examined affordability, median income, median home price and homeownership program availability in 370 U.S. counties with a population of at least 100,000 and where sufficient data was available and then ranked each county based on its affordability and accessibility for low down payment buyers such as first-time homebuyers and boomerang buyers.
Counties ranking the highest for affordability and accessibility for low down payment borrowers
Of the counties analyzed the top five highest for affordability and accessibility for low down payment buyers included Ashtabula, Ohio, Imperial, Calif., in the El Centro metro area, Hernando, Fla., in the Tampa metro area, Clayton, Ga., in the Atlanta metro area and Lackawanna, Pa., in the Scranton metro area.
Other markets within the top 25 for affordability and accessibility score for low down payment borrowers included counties in Northern New Jersey, Pittsburgh and Allentown, Pa.,, Dayton, Ohio and Pensacola, Fla.
“The Ohio markets continue to provide affordable housing benefits for many boomerang and first time buyers. The region’s stability in price, and growth in jobs across the state, provides greater access for buyers to take advantage of lower down payment opportunities, as well as an increasing available inventory in new and existing communities,” said Michael Mahon, president at HER Realtors, covering the Cincinnati, Dayton and Columbus markets in Ohio. “Unlike many market across the country, Ohio has remained at an affordable median housing price that enables many first time buyers and boomerang buyers to realize their dreams of homeownership.”
Counties ranking the worst for affordability and accessibility for low down payment buyers
County housing markets ranking in the top five lowest for affordability and accessibility for low down payment buyers were in New York, N.Y., Fairfax, Va., in the DC metro area, Charleston, S.C., Santa Clara, Calif., in the San Jose metro area and Forsyth, Ga., in the Atlanta metro area.
Of the 370 counties analyzed, 334 (90 percent) were more affordable for low down payment buyers in April 2015 than their historic averages. There were 36 counties of the 370 analyzed (10 percent) that were less affordable for low down payment buyers in April 2015 than their historic averages.
On average, across all 370 counties analyzed the average amount of down payment help was $10,443 and that was on average 6.84 percent of the median home sales price in April.
Counties with the highest average down payment program benefit as a percentage of the median home sales price in April 2015 were Volusia County, Fla., in the Deltona-Daytona Beach-Ormond Beach metro area (24.73 percent), Pasco County, Fla., in the Tampa metro area (24.16 percent), Kern County, Calif., in the Bakersfield metro area (21.62 percent), Sullivan County, Tenn., in the Kingsport-Bristol metro area, and Broward County, Fla. in the Miami metro area.
Counties with the highest average down payment assistance in dollars were San Francisco, Calif. ($51,713), Orange County, Calif. ($43,121), Los Angeles County, Calif. ($40,004), Placer County, Calif. in the Sacramento metro area ($35,475) and King County, Wash. in the Seattle metro area ($33,735).
“Housing affordability is a critical issue for all buyers today. This report underscores the fact that there are significant missed opportunities for down payment help, even in the areas ranked worst in affordability. There are programs in every community that could increase housing affordability for buyers, especially first time and boomerang buyers,” said Rob Chrane, CEO of Down Payment Resource. “The entry cost for homeownership is the greatest challenge for all buyers. This report highlights how homebuyers can save on their home loan when they access available programs.”