Date:-24-Aug-2011

Affordability level hits 20-year high

Astute property investors will be alerted to the fact that U.S. housing affordability has hit a 20-year high, according to the latest National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

The HOI shows that almost three in four U.S. homes in the second quarter of this year were affordable to families earning the national average income of $64,200 (€44,715/£39,000).

Lakeland-Winter Haven in Florida was named among the most affordable areas in the USA, along with Syracuse in New York state, Indianapolis-Carmel in Indiana, Dayton Ohio. But it was Ohio-Pennsylvania which topped the index as the country’s most affordable, large-scale housing market, where a staggering 94% of residential properties are now considered affordable for families earning an average wage.

With the housing market showing further signs of recovery, a growing number of property investors are eyeing property investment opportunities in the USA, particularly places like Florida, where there is now stronger national and international demand for properties.

Charlie Young, president and chief executive of ERA Real Estate, recently commented: “Now is a great time to invest in real estate but it's critical that people new to the game watch out for common pitfalls.”