The affordability issue is not just reserved to urban centers in big cities. For example, Brooklyn, N.Y. is actually seeing a larger drop in affordable rental listings than Manhattan, according to CNBC. Oakland, when compared to San Francisco, and Scottsdale, when compared to Phoenix are exhibiting similar patterns. Now, it may be because the Brooklyns, Oaklands, Scottsdales of the country have farther to fall, but the fact that their affordable housing shares are falling, and not remaining steady or increasing is not good news.
But don’t think this means Manhattan, San Francisco, and Phoenix are becoming more affordable. In San Francisco, around 61 percent of one-bedroom homes are renting for $3,000 or more per month, six percent more than one year ago.
Home prices are becoming more unaffordable too, even with mortgage rates at near historic lows. The only true relief will come from an increase in the inventory of homes for sale. Everything else is just a band-aid.