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Phoenix Metro ranks 24th least affordable city to buy a home

Boise, Naples, Austin, Denver and Reno are top 5 least affordable
MoneyGeek.com released their report indicating that home prices in the Phoenix metro area shot up 42.7 percent over the last three years.
Updated: Apr. 21, 2022 at 5:45 PM MST
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PHOENIX (3TV/CBS 5) - Let’s start with the latest numbers for the Phoenix area and how they stack up against other major cities.

MoneyGeek.com released their report indicating that home prices in the Phoenix metro area shot up 42.7 percent over the last three years, with the median cost just over $365,197 for a house. But the median annual income is only $36,856, making the Phoenix area the 24th least affordable city to buy a home.

But what cities rank in the top 5 least affordable? According to moneygeek.com, topping the list is Boise, Idaho. Homes there shot up 59.3 percent over the past three years, with the average home going for $452,219.

Number two on the list is Naples and Marco Island in Florida. Homes went up 69.5 percent over three years, with the average home selling for $435,313. Number three is Austin, Texas, where homes soared 50.1% over three years and have an average selling price of $456,690.

Reno saw homes increase 46.9 percent over three years, with an average cost for a home sitting at $460,64. And Denver comes in at the number five least affordable city to buy a home, with houses soaring 43.4 over three years and selling at an average of $608,917.

So, why are homes increasing in value so quickly, making home buying for many unrealistic? For the answer, 3 On Your Side turned to Doug Milnes from moneygeek.com. “There’s just not enough houses to buy out there. Houses are soaring because of the pandemic, Milnes said. “People are moving because they’ve been renting, and they’re looking for a home to buy. You’ve got an interruption in supplies, and construction prices have moved up. So, all those things put together are helping to push homes prices up across the country.”

And to put things in perspective, Milnes says to purchase the average-priced home in Phoenix; he says you need to earn around $109,000 a year, and many Arizonans are making nowhere near that amount.

If you want to see MoneyGeek’s entire list of unaffordable cities, visit moneygeek.com.