According to the latest National Association of Home Builders-Wells Fargo Housing Opportunity Index, San Francisco, which has been the nation’s least affordable housing market for nearly five years, was supplanted by Los Angeles in the third quarter of 2017. In all, 58.3% of new and existing homes sold between the beginning of July and end of September were affordable to families earning the US median income of $68,000. This is down from the 59.4% of homes sold that were affordable to median-income earners in the second quarter.

“Solid economic growth, along with ongoing quarterly job gains and rising household formations, are fueling housing demand,” said NAHB chief economist Robert Dietz, adding, “tight inventories and a forecast of rising mortgage interest rates through 2018 will keep home prices on a gradual upward path and slowly lessen housing affordability in the quarters ahead.” The national median home price rose to $260,000 in the third quarter from $256,000 in the second quarter of 2017. Meanwhile, average mortgage rates inched up two basis points in the third quarter to 4.1% from 4.08% in the second quarter.

For the fourth consecutive quarter, Youngstown-Warren-Boardman, in Ohio was rated the nation’s most affordable major housing market. There, 90.1% of all new and existing homes sold in the third quarter were affordable to families earning the area’s median income of $54,600.