Typically, people who live in more rural areas make less money than their urban counterparts, but they are also more likely to have a lower cost of living than those in urban areas. As a result, many towns are affordable, and, in some cases, they may be more affordable and have lower rates of poverty than cities.
But, as our data shows, there are many towns where home prices are as expensive, if not more expensive, than home prices in the country’s largest cities. Unfortunately, while home prices in these towns are as high as they would be in a big city, incomes are not.
While it may seem counterintuitive that there would be such a large supply of homes unaffordable for the majority of people in an area, it makes some sense because many of the most expensive towns in the country are considered “resort” or “destination” towns. In other words, they are places where large numbers of people (usually wealthy) visit during certain times of the year.
For example, the Jackson area in Wyoming and Idaho is renowned for its luxury ski resorts and proximity to Yellowstone National Park. Vineyard Haven, Mass., is located on Martha’s Vineyard, a common vacation spot for the wealthy from nearby cities like Boston or New York.
Because many people who live in these towns do not live there year-round, and otherwise make the bulk of their income elsewhere, they can afford to buy homes well outside of the price range of the average townsperson. This demand for expensive luxury homes, as well as certain building restrictions in towns like Jackson, cause home prices to skyrocket and help lead to serious income and wealth inequality.
Though home affordability may be a challenge in many towns across the country, there are certain programs that can help make buying a home a more achievable goal. For example, USDA loans can help families living in rural areas avoid making a down payment on a home and get a lower interest rate on home loans. FHA loans are another option for families who are struggling to buy a home due to an insufficient amount of cash for a down payment or a weak credit score.
While these programs likely won’t make a $600,000 home affordable to a person making $30,000 a year, they should nonetheless be able to help many families who live in the towns featured in this study.
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September 12, 2020 at 04:45PM
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Do you live in one of America's most expensive towns? - MSN Money
"expensive" - Google News
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