Mortgage rates may be hovering near record lows, but it's not enough to counter the sky-high, and still rising, prices in many of the nation's largest housing markets.
Big-city rents have been soaring, but now the outlying areas where residents flee to find affordability are seeing even bigger rent gains, too. For homebuyers, the picture is not much better. A very tight supply of homes for sale is pushing home values higher and pricing potential buyers out, both first-time and move-up buyers.
Big cities have always been expensive, but in a troubling new twist — suburban areas are becoming unaffordable faster than their urban neighbors, according to a new report by Trulia. Brooklyn, New York, is actually seeing a bigger drop in affordable rental listings than Manhattan. The same is true in Oakland, California, compared to San Francisco and Scottsdale, Arizona, compared to Phoenix. Portland, Oregon, and Seattle have seen a big influx of residents fleeing pricey Northern California and are now becoming more unaffordable than the San Francisco Bay area.