Recent research conducted by Chapman University and the Frontier Centre for Public Policy in Canada has spotlighted Pittsburgh, Pennsylvania, as one of the world’s most affordable cities for housing. Among 94 major cities analyzed across eight countries, Pittsburgh stands out for its affordability in the housing market.
While home prices have skyrocketed faster than income in many regions, the study sheds light on the dominance of California cities among the least affordable housing markets. Cities like San Jose, Los Angeles, San Francisco, and San Diego lead the charts in unaffordability, posing challenges for many American families.
Joel Kotkin, Director for Chapman’s Center for Demographics and Policy, highlights how restrictive housing policies could inadvertently worsen the cost-of-living crisis faced by families across the nation.
The study’s affordability ranking is based on each metro area’s price-to-income ratio, comparing median house prices to median household incomes. The widening gap between housing costs and income is attributed to land use policies that artificially restrict housing supply, driving land prices upwards.
Despite the widespread housing affordability crisis, there is some positive news. The study finds that nine out of the ten most affordable cities are located in the United States, with Pittsburgh leading the pack, followed closely by Rochester and St. Louis.
However, the report also underscores several “severely unaffordable” housing markets in the U.S., particularly on the West Coast and in cities like New York, Boston, and Miami. Conversely, fewer cities in the Mountain and Midwest regions fall into this category, including Denver, Salt Lake City, and Milwaukee.
Amidst the ongoing housing shortage, exacerbated by the pandemic, Pittsburgh’s recognition as one of the most affordable major cities reaffirms its status as an attractive place to live. It offers residents the opportunity to own homes without facing exorbitant costs, making it an appealing destination for prospective homeowners.