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Press Release – Rising Interest Rates Will Impact Some Markets More than Others

 

IRVINE, Calif., April 19, 2018 – HomeUnion®, the leader in online residential real estate investing, has issued a new study that reveals the impact of rising interest rates for large metros across the U.S. To arrive at the results, HomeUnion® calculated how many households would no longer qualify to purchase a median-priced home if interest rates climbed from 4.5 to 5.5 percent.

“Rising interest rates are on everyone’s mind right now, particularly those contemplating making the transition into homeownership or current owners considering trading up,” says Don Ganguly, CEO of HomeUnion®. “The impact of rising rates on housing markets isn’t uniform, and Chicago and Washington, D.C., top our list of most potential households shut out of the buyer pool,” notes Ganguly. “Most coastal markets have already appreciated beyond the bulk of residents’ ability to purchase a home, so rising rates will have little impact on areas such as San Francisco and San Jose, whereas valuations have a higher potential impact on some traditionally affordable areas,” according to Ganguly.

Here are the 10 most impacted metros due to rising interest rates.

MetroHouseholds No Longer Meeting Minimum Qualifying IncomeIncrease in Minimum Qualifying Income at 5.5% InterestPercent of Households No Longer Meeting Minimum Qualifying Income
Chicago118,100$5,9003.2%
Washington, D.C.112,100$9,8004.8%
Boston93,900$10,8004.9%
Los Angeles86,300$13,1002.5%
Philadelphia85,500$5,6003.6%
Atlanta84,600$4,7003.9%
Dallas-Fort Worth81,500$6,0003.1%
Phoenix74,500$6,0004.2%
Houston69,900$5,9002.9%
Riverside-San Bernardino62,500$8,3004.4%

 

Methodology: HomeUnion® Research Services analyzed median existing home prices during the fourth quarter of 2017. Minimum qualifying income based on 28% of household income. Number of households in each income bracket assumed uniform for the purpose of this study.

 

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www.homeunion.com


About HomeUnion®

HomeUnion® is the leader in online residential real estate investing. Based in Irvine, Calif., the company provides all the services needed for individuals to invest remotely in residential real estate. HomeUnion® is the only company that offers investors the opportunity to acquire fully managed real estate directly, or indirectly via crowdfunding.

 

Media Contact:
Steve Hovland

602.697.6734

shovland@homeunion.com

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