August 5, 2020 – (Excerpted from Orlando Business Journal)
Bakersfield’s housing market ranked as the fifth most affordable out of 100 cities, according to the August housing affordability report released by New York-based property investment company RealtyHop.
California’s ninth largest city, where the median home price is $224,000, has stayed in the same No. 5 spot each month since May. Bakersfield was the only California city among the five most affordable for housing. On the flip side, California is home to three of the nation’s least affordable cities for housing: Los Angeles, San Francisco and Oakland.
This is what the survey said about Bakersfield:
"Bakersfield, CA came in fifth place on our most affordable list, as real estate prices increased slightly from $220,000 last month to $224,000. Assuming median income of $60,058, as well mortgage and local taxes, the average family in the city would need to spend only 22.27% of income on housing costs."
The rankings are based on four key metrics from the U.S. Census and American Community Survey:
- Median household income from the U.S. Census
- Median for-sale home listing prices via RealtyHop data
- Local property taxes via American Community Survey Census data
- Mortgage expenses, assuming a 30-year mortgage, 4.5% interest rate, and 20% down payment
The full rankings and methodology can be found here.