Financial experts suggest only spending 1/3 of your income on housing, despite the ratios we see across the country. Fortunately, US News & World Report recently ranked 10 metropolitan area with populations over 1 million as the most affordable metro areas. These are the cities with the smallest median home prices to median household incomes. Buffalo came in at #8 with a ratio of only 3.4%. This confirms it sure can be affordable to live in Buffalo!

Home prices in some of the more expensive cities can be 6 to 7 times the median household income. In contrast, the national median single family existing home price ($171,900) is roughly 3.25 times the national median income. 

Ideally, buyers put a smaller portion of their income toward their homes. That is a trend that continues in WNY and other cities are noticing in these tough economic times. The full list of the 10 most affordable metro areas is as follows:

      Metro Area                                           Median Price    Median Income   Ratio
#1  Atlanta - Sandy Springs - Marietta, Ga.       $102,100          $58,355        1.75%
#2  Minneapolis - St.Paul - Bloomington, Min.   $145,000          $66,404         2.18%
#3  Las Vegas - Paradise, Nev.                       $126,200          $56,294         2.24%
#4  Rochester, NY                                          $118,900          $52,971         2.24% 
#5  Phoenix - Mesa - Scottsdale, Ariz.             $126,000          $55,548         2.27%
#6  Cleveland - Elyria - Mentor, Ohio                $108,500          $47,761         2.27%
#7  Cincinnati - Middletown, Ohio - Ky. - Ind.    $127,300          $54,534         2.33%
#8  Buffalo - Niagara Falls, NY                        $113,000          $48,199         2.34%
#9  St Louis, Mo - Ill.                                      $129,000          $54,386         2.37%
#10 Kansas City, Mo. - Kan.                           $137,000          $57,363         2.39%

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