Unison Home Ownership Investors Releases 2018 Home Affordability Report

SAN FRANCISCO, April 4, 2018 /PRNewswire/ -- Unison Home Ownership Investors, the leading provider of home ownership investments, today released its 2018 Home Affordability Report, a comprehensive breakdown of housing affordability in 22 of the largest metro areas across the United States. The report found inequality in housing affordability, not only from city to city but also within cities from one neighborhood to another.

The report includes affordability data for major metro areas and popular neighborhoods in every region of the country. It also shows the median home price and annual salary needed to buy a home with a 5%, 10% or 20% down payment in each area. The report introduces the Unison Home Affordability Index, which shows how affordable a particular market is by estimating the number of years needed to save up in order to buy a home, given the median salary and median home price for that market. The report also provides context for select cities and neighborhoods, including unique characteristics of each neighborhood that contribute to its desirability and affordability.

Key insights include:

• The home affordability gap is prevalent across the U.S., not just from city to city, but from neighborhood to neighborhood.
• In New York city proper, the salary needed for a median home with a 10% down payment is an astounding $418k, but in Chicago it is only $65k and in Dallas it is only $49k.
•  In the city of Atlanta, the Peachtree Heights West neighborhood requires a salary of $142k with a 10% down payment, while the Ormewood Park / Glenwood Park neighborhood requires a salary of just $63k.
• The least affordable and most affordable metros in the country also show a major affordability gap.
• The least affordable metros in the country are all in California, including San Francisco-Oakland-Hayward, where an annual salary of $231k is needed to buy the median home with a 10% down payment, Los Angeles-Long Beach-Anaheim, where a salary of $157k is required, and San Diego-Carlsbad, where a salary of $139k is required.
• Alternatively, the most affordable metros can be found in the Midwest, including Detroit-Warren-Dearborn, where an annual salary of $35k is needed to buy the median home with a 10% down payment, Kansas City, where a salary of $41k is needed, and Tampa-St. Petersburg-Clearwater, where a salary of $44k is needed.
• Housing options exist for home buyers with only a 5% down payment. Note that the National Association of Realtors found that from December 2016-November 2017, 61% of first-time home buyers made a down payment of 0% to 6%.
• In the West / Northwest, Salt Lake City requires a $85k salary to afford a median home with a 5% down payment.
• In the Southwest, Phoenix requires a $57k salary to afford a median home with a 5% down payment and Las Vegas requires a $62k salary.
• On the East Coast, Philadelphia requires a $40k salary to afford a median home with a 5% down payment.
• In the South, Tampa / St. Petersburg requires a $48k salary to afford a median home with a 5% down payment, Dallas requires a $53k salary, Atlanta requires a $67k salary, Nashville requires a $76k salary and Miami requires a $79k salary.
• In the Midwest, Kansas City requires a $31k salary to afford a median home with a 5% down payment, Minneapolis requires a $68k salary and Chicago requires a $70k salary.

"Our mission at Unison is to increase the purchasing power of potential home buyers by educating them about the options they have," said Benjamin Feldman, director of content at Unison. "We hope to make the process easier and more manageable by providing data and insights that help identify city and neighborhood options based on their budgets. Our findings present a clear breakdown of the current state of the housing market and serve as a reference for home buyers who are planning to buy a home in the next year or beyond."

While there are options throughout the nation for different levels of accessibility and affordability, a home ownership investment can double or even triple a buyer's down payment funds. This gives people an opportunity to not only buy a home, but to have more choice when it comes to important considerations like commute, school district and size of home.

Another initiative aimed at helping new home buyers attain the goal of owning their own home is the Unison Down Payment Movement. The recently launched Down Payment Movement is a program that inspires people to save for a down payment to buy a home and provide support along the way. When prospective homebuyers join the movement, they pledge to save a specific amount every month and also receive custom tips from dedicated experts in personal finance and housing bloggers that help along the way. They also receive access to a 12-week educational course, equipping them with all the necessary information to successfully buy a home.

To learn more about Unison and home ownership investments, visit www.unison.com.

About Unison 
Unison is the leading provider of home ownership investments, modernizing home financing through long-term partnerships. Unison works with lenders, regulators and institutional investors to integrate home ownership investing into the U.S. housing finance system. Unison HomeBuyer helps purchasers buy the home they want with less debt and risk, typically by doubling the down payment. The larger down payment makes it easier to qualify for a loan, increases buying power, lowers the monthly payment and/or allows a buyer to reserve cash. Unison HomeOwner provides current homeowners with cash to eliminate debt, remodel, pay for school, invest or as a cash cushion, without the added debt or payments of a home equity loan or HELOC.

Unison's platforms have received prestigious recognitions including the FinovateSpring 2017 and Benzinga 2017 Best of Show awards. Headquartered in San Francisco, Unison operates in 18 states plus Washington D.C. and has secured over $300M in total capital. For additional information, visit https://www.unison.com.

SOURCE Unison Home Ownership Investors