St Louis Area Home Affordability Best In St Louis City

During the first quarter of this year, homebuyers in the City of St Louis needed to spend a median of just 16.9% of their annual wages to buy a median-priced home, according to data just released by ATTOM Data Services.  This makes the City of St Louis the most affordable county to buy a home in the St Louis area.  As the table below shows, St Charles County, where it takes 37.7% of annual wages to buy a median-priced home is the least affordable county for 1st quarter 2019.

On a positive note, St Charles County had an affordability index of 101 for the quarter, meaning that homes were slightly more affordable there than the historic average.  St Clair County had the best affordability index at 103 and the City of St Louis had the worst at 93.

St Louis Area Home Affordability – 1st Quarter 2019

St Louis Area Home Affordability - 1st Quarter 2019

Cheaper To Buy Than Rent A Home In Six Out Of Eight St Louis Areas Counties

According to a report just released this morning by ATTOM Data Research, it’s cheaper to buy a home than rent in 6 of 8 St Louis metro area counties covered in the report.  The data reported also shows, however, that home prices are rising faster than rents in all of the counties, a trend that, if it continues, could make buying a home a less affordable option in the future.  The data also shows, on a postiive note, that in 6 of 8 counties wages are rising faster than rents.  The counties are split when it comes to wages vs home prices however, with wages rising faster than home prices in 4 and home prices rising faster than wages in the other 4.

Affordabilty is determined by the percentage of wages necessary to purchase a home in a given County.  Based upon this criteria, the most affordable county to buy a home is the City of St Louis at 20.1%, followed by Madison County, IL at 27.3% and then St Louis County at 27.6%.  The least affordable county to buy a home on the list is St Charles County at 45.3%

St Louis Home Affordability – 2018

St Louis Home Affordability - 2018