By Angela Gonzales | Phoenix Business Journal
Increases in incomes were no match for surging home prices in the 100 largest U.S. housing markets, according to a new study by Point 2 Homes.
But in metro Phoenix, where home prices have increased by 71% in the last decade, wage growth has kept up the pace, according to the study. After a 2% increase in 2015 compared with 2010, the mortgage burden of Phoenix homeowners “froze” at 17%, a level where it still stands, said Alice Carciu, an analyst with Point 2 Homes who led the study.
“Looking at income growth, Phoenix again comes on top among the cities of its size included in the analysis, with a 51% increase in the median household income between 2010 and 2020,” she said.
Looking at similar sized cities, income increased by 49% in San Diego, 44% in Philadelphia and 28% in San Antonio, Texas.
Carciu said mortgage burden is bigger in Phoenix than Philadelphia, at 15%, and San Antonio, at 13%, but less than San Diego, where owners spend 30% of their income on mortgage payments, she said. [Scottsdale’s Share of Income for Mortgage is 24%.]
Kevin Kosan, SVP of the Home Builder Finance Group for First International Bank & Trust in Scottsdale, said the affordability study is good news for metro Phoenix and the area’s ability to maintain an affordability index of 17% in 2020 — the same as in 2010.
While Kosan said he’s seeing well qualified buyers, he’s also seeing tougher mortgage underwriting criteria.
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