BiggerPockets Daily Monthly Mortgage Costs Drop in Big Markets—Good News?
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May 1, 2025 Falling monthly mortgage payments in major U.S. metros could be a silver lining for buyers, especially in Florida and Texas. This trend appears to enhance negotiating power and affordability despite lingering challenges in places like California. The podcast also explores resilient short-term rental markets capable of thriving during a recession, spotlighting successful areas like Gatlinburg and Broken Bow. These insights shed light on the evolving dynamics of housing and investment opportunities in changing economic landscapes.
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Mortgage Payments Falling in Markets
- Monthly mortgage payments are falling in 12 major metro areas, driven by lower prices and modest rate drops.
- This trend is strongest in Florida and Texas buyer's markets with rising inventory and slower demand.
California's High Housing Costs
- California remains the least affordable state despite some payment declines in San Francisco and Oakland.
- Median monthly payments in San Jose and Los Angeles are extremely high, exceeding many residents' income capacities.
Rust Belt Offers Better Affordability
- Rust Belt cities like Detroit and Cleveland have much lower mortgage payments and better affordability ratios.
- These markets still see strong demand without overheating like other regions.