Soaring home prices and markedly diminished inventory are suppressing housing affordability for many nationwide who are simultaneously dealing with a third roadblock: sharp mortgage rate growth.
According to a new report from Realtor.com, higher home prices and rising rates have inflated monthly mortgage payments by about 50% in just one year. Nationally, mortgage payments today are approximately $1,882 a month, not including property taxes or homeowners insurance. A year ago, they were $1,249.
The report noted that higher monthly costs are affecting homeowners even in major metros where home prices have dropped, like Los Angeles and Philadelphia.
“Even in markets with price declines, interest rates alone are driving payments so much higher,” said George Ratiu, manager of economic research at Realtor.com. “What stands out is even more affordable cities, such as Atlanta, Houston and Chicago, are seeing significant increases in the lack of affordability.”
The report details mortgage payment increases in the nation’s 15 largest metropolitan areas, including Houston, which saw a 47% increase, and Dallas, a 55% jump.
Realtor.com determined these findings by comparing the median home list prices between April 2021 and April 2022 and average mortgage rates from the first week of May 2021 to the first week of May this year.
Here’s a look at mortgage payments in the top 15 U.S. metros:
New York City
Increase in monthly mortgage payment: 45%
Median home list price: $712,000
Annual change in home prices: 9.6%
Los Angeles
Increase in monthly mortgage payment: 27%
Median home list price: $950,000
Annual change in home prices: -3.9%
Chicago
Increase in monthly mortgage payment: 32%
Median home list price: $350,000
Annual change in home prices: 0%
Dallas
Increase in monthly mortgage payment: 55%
Median home list price: $438,000
Annual change in home prices: 17.1%
Houston
Increase in monthly mortgage payment: 47%
Median home list price: $389,000
Annual change in home prices: 11.4%
Philadelphia
Increase in monthly mortgage payment: 26%
Median home list price: $323,000
Annual change in home prices: -5%
Washington, D.C.
Increase in monthly mortgage payment: 47%
Median home list price: $562,000
Annual change in home prices: 11.3%
Miami
Increase in monthly mortgage payment: 83%
Median home list price: $578,000
Annual change in home prices: 38.3%
Atlanta
Increase in monthly mortgage payment: 43%
Median home list price: $411,000
Annual change in home prices: 8.2%
Boston
Increase in monthly mortgage payment: 42%
Median home list price: $754,000
Annual change in home prices: 7.9%
San Francisco
Increase in monthly mortgage payment: 38%
Median home list price: $1,098,000
Annual change in home prices: 4.6%
Detroit
Increase in monthly mortgage payment: 19%
Median home list price: $248,000
Annual change in home prices: -9.8%
Phoenix
Increase in monthly mortgage payment: 61%
Median home list price: $527,000
Annual change in home prices: 22%
Seattle
Increase in monthly mortgage payment: 58%
Median home list price: $800,000
Annual change in home prices: 19.5%
Minneapolis
Increase in monthly mortgage payment: 52%
Median home list price: $414,000
Annual change in home prices: 15.1%