Phoenix condo owners need two years of income to upsize to a house
Condo owners looking to upgrade to a house in many metro Phoenix areas will have to save for years to afford the larger space, according to a new analysis by real estate company Point2.
State of play: Point2 compared the median prices of single-family homes and condos in each city and used the median area income to determine how many years of savings were needed for the typical condo owner to buy a house.
- Single-family homes are more expensive than condos in every Valley city, but there are some pockets where upsizing is easier.
- For example, Phoenix, Chandler and Peoria condo owners need less than two years of income to afford to upgrade to a single-family home.
Meanwhile, Scottsdale owners need almost five years of income to cover the difference.
- The median condo price is $400,000 compared with $863,000 for a single-family home.
What they're saying: "Scottsdale seems to be an expensive outlier in an already hot market, which implicitly puts a strain on upsizing," Point2 researcher Alexandra Ciuntu tells Axios Phoenix.
- Additionally, only 67% of homes for sale in Scottsdale are single-family (the rest are condos or townhomes), which means there are fewer options for upsizing.
- By comparison, single-family homes make up more than 90% of listings in Peoria, Gilbert and Surprise, Ciuntu says.
The bright side: Point2's analysis applies only to current market values. People who purchased condos prior to the 2020 housing boom almost certainly have significant equity that would make purchasing a bigger home easier.
The big picture: Not all hope is lost for wannabe homeowners, especially since the cooled real estate market has forced sellers to lower prices and offer concessions, like helping with closing costs.
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