U.S. Home Markets that are the Most and Least Affordable U.S. Home Markets that are the Most and Least Affordable More good news for residents of Indianapolis, where the hometown Colts have had a football season nothing short of outstanding. The National Association of Home Builders said Indianapolis, where the median price for new and existing homes was $125,000, took the title in the 2005 third quarter for the most affordable housing market among the nation's major metropolitan areas. About 90 percent of homes sold were affordable to families earning the median income of $64,000. Other areas among the most affordable in the country include Youngstown-Warren, Ohio; Detroit-Livonia-Dearborn, Mich.; Buffalo-Niagara Falls, N.Y.; and Oklahoma City, Okla. However, overall affordability for the nation's housing market dropped to the lowest level since the NAHB began calculating the index in 1992. Roughly 43 percent of homes sold in the third quarter were affordable to median-income families. The decline was driven by a 5 percent gain in the average home selling price from the second quarter, the NAHB said. Meanwhile, mortgage rates were steady, with the average weighted interest rate for fixed and adjustable mortgages gaining only 2 basis points to 5.84 percent. "Strong house-price performance is the double-edged sword that has simultaneously attracted and discouraged new home buyers," said Dave Wilson, NAHB president, in a statement. Not surprisingly, the nation's least affordable housing markets are concentrated in California, with the Los Angeles metro area topping the list, where only 2.4 percent of homes sold were affordable to those earning the median income. The median sales price for new and existing homes was $495,000, according to the NAHB. Other California spots on the least-affordable list include Santa Ana-Anaheim-Irvine, San Diego-Carlsbad-San Marcos, and Stockton. Meanwhile, New York-White Plains-Wayne, N.Y.-N.J. was the only metro area outside California that cracked the five least affordable major housing markets, according to the NAHB. This article is reprinted by permission from RealEstateJournal.com Copyright © Dow Jones & Co., Inc. All rights reserved.