Slow, Steady Wins the Race in the Midwest

The Midwest is home to 15 percent of all the nation's housing units, and to seven out of the 10 most affordable states in the U.S.

Ali Wolf, director of economic research at Meyers Research, recently traveled to the Midwest, and took note of current conditions in several Ohio markets. The median new home price in Cincinnati is 12 percent below the national average ($288,000), while the city's median household income is 10 percent higher than the national average. In Columbus, one of the Midwest's least affordable markets, 43 percent of local households can afford the median-priced home, better than the national average of 41 percent.

New home absorption expectations in the Midwest are lower than one sees in other markets; generally, 1.00-2.00 sales per month is considered good. Indianapolis had the highest average sales rate per community in July at 1.65, up from 1.47 during the same time last year. Cincinnati (29 percent), Indianapolis (12 percent), and Minneapolis (9 percent) saw the greatest increase in contracts on a year-over-year basis.

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