LendingTree Ranks America's Most Expensive Small Towns
CHARLOTTE, N.C., Dec. 2, 2020 /PRNewswire/ -- In its latest study, LendingTree(®) analyzed the 50 US towns with populations under 50,000 with the most expensive median-home values. LendingTree then ranked the towns based on where home values were the highest and also compared home values in these towns to home values in the nation's 50 largest cities. The goal: To determine whether towns are actually less expensive than cities.
Key findings
-- Small towns Vineyard Haven, Mass., Summit Park, Utah and Jackson, Wyo.,
have the most expensive home prices in the nation. The median home
prices in these towns are $667,400, $598,900 and $563,100 respectively,
meaning that a home in any of these areas costs about as much as a home
in Los Angeles does. In fact, homes in Vineyard Haven and Summit Park
are even more expensive than they are in Los Angeles.
-- Relative to income, homes in Vineyard Haven, Mass., Breckenridge, Colo.
and Jackson, Wyo., are the most expensive. In these areas, the median
home price is an average of 7.5 times higher than the median area
income. This suggests that homebuyers in these towns have to stretch
their budgets in order to buy a home.
-- Homes are the least expensive relative to median household income in Los
Alamos, N.M., Gillette, Wyo. and Rock Springs, Wyo. The median home
price in these areas is an average 2.7 times higher than the median area
income, suggesting that homes in each town are relatively affordable.
However, this isn't all that surprising given that the median income in
each town is higher than the overall average for the towns featured in
LendingTree's study, while home prices are lower than average.
-- On average, buying a home in one of the nation's 50 most expensive towns
is more costly than buying a home in one of the nation's largest metros.
An average of the median home prices across the towns featured in
LendingTree's study is $271,224. In the nation's 50 largest cities, the
average of median home prices is $269,180.
-- Although America's most expensive towns are often more expensive than
its largest cities, people who live in towns tend to earn less income
than they would in a city. The median household income across the
nation's most expensive towns averages to $60,150, nearly $7,000 less
than the average median household income across the nation's 50 largest
cities.
Top 10 Most Expensive Small Towns in US
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Rank
Micropolitan area Total population 2018 Median household income Median home value Home value to income
ratio
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1
Vineyard Haven, MA 17,313 $71,224 $667,400 9.37
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2
Summit Park, UT 40,511 $100,453 $598,900 5.96
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3
Jackson, WY 34,139 $78,452 $563,100 7.18
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4
Breckenridge, CO 30,429 $77,589 $563,000 7.26
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5
Steamboat Springs, CO 24,874 $74,273 $510,600 6.87
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6
Heber, UT 30,523 $77,449 $388,900 5.02
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7
Hood River, OR 23,131 $62,935 $355,100 5.64
--- ---
8
Gardnerville Ranchos, NV 47,828 $62,503 $346,500 5.54
--- ---
9
Juneau, AK 32,330 $88,213 $344,000 3.9
--- ---
10
Hailey, ID 28,201 $51,207 $340,800 6.66
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To view the full report, visit: https://www.lendingtree.com/home/mortgage/most-expensive-towns-in-america/
Methodology
Data used in this study comes from the 2017 American Community Survey 5-Year Estimates (the most recent survey which has the data necessary to perform this study). For the purposes of this study, LendingTree used micropolitan level data to approximate town level data.
When determining whether or not a home is affordable, the assumption is that an income earner will be able to afford a 20% down payment on the median home value in their area, and that they will receive a mortgage loan with a rate of 4.6% (the average rate offered to Americans). By using that data, the likely monthly payment and down payment for a median-priced home in a given micropolitan area were calculated.
An "affordable" monthly mortgage payment is based on the "28% rule," which says that a person should not spend more than 28% of their yearly gross salary on yearly costs related to housing. This rule, while not necessarily applicable to everyone, is useful for homebuyers to keep in mind, as it helps to ensure that they are not overspending on their home and leaving too little money for other expenses.
By subtracting the monthly housing payment that is affordable to an income earner in the geographies highlighted in the study from the calculated housing payment that would be required to purchase a home valued at the median level, we are able to determine whether or not an average townsperson can reasonably afford to purchase a home in the town that they live in.
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student loans, insurance, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to improve credit health. My LendingTree proactively compares consumers' credit accounts against offers on our network and notifies consumers when there is an opportunity to save money. In short, LendingTree's purpose is to help simplify financial decisions for life's meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information, go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree
MEDIA CONTACT:
Stacia Werksma
Stacia@lendingtreenews.com
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SOURCE LendingTree.com
