The Midwest is home to 15 percent of all the nation's housing units, and to seven out of the 10 most affordable states in the U.S.
Ali Wolf, director of economic research at Meyers Research, recently traveled to the Midwest, and took note of current conditions in several Ohio markets. The median new home price in Cincinnati is 12 percent below the national average ($288,000), while the city's median household income is 10 percent higher than the national average. In Columbus, one of the Midwest's least affordable markets, 43 percent of local households can afford the median-priced home, better than the national average of 41 percent.
New home absorption expectations in the Midwest are lower than one sees in other markets; generally, 1.00-2.00 sales per month is considered good. Indianapolis had the highest average sales rate per community in July at 1.65, up from 1.47 during the same time last year. Cincinnati (29 percent), Indianapolis (12 percent), and Minneapolis (9 percent) saw the greatest increase in contracts on a year-over-year basis.
Advertisement
Related Stories
New-Home Sales
New-Home Sales Steady During February
A small increase in mortgage rates during February led to a flat reading for new-home sales
Market Data + Trends
Hottest Markets for Rental Activity in February
Looking at February's rental activity, the West continued to be the most desirable region for apartment hunters for the second month in a row, with the South close behind
Market Data + Trends
Looking Ahead: Second-Quarter Housing Market Trends
Industry pros offer insights about what real estate trends we can expect to see during the next three months