Trulia's Ralph McLaughlin explains why buying an unaffordable home, where monthly mortgage payments exceed 31% of a household's income, might actually not be a bad idea for millennials.

In many markets where there is strong wage and income growth, such as New Haven, Conn., Providence, R.I., and Newark, N.J., mortgage payments will actually shrink over time and can eventually become affordable. 

However, the opposite also occurs in markets such as San Francisco, Los Angeles and New York, where home prices are high and wage growth is slow, which means that owners may end up paying more than 31% of their income for a mortgage. 

Trulia determined where buying an unaffordable home might be a good idea:

Of the 100 largest housing markets in the U.S., initial mortgage payments are affordable in 73. In the most affordable of these 73 markets, initial payments constitute 20% or less of median household income. What’s more, households in the top 10 most affordable markets end up paying 7% or less of their income towards their mortgage payments by the end of the loan. For example, in Columbia, S. C., where home prices are low but income growth is strong, mortgage payments drop from 17.0% of monthly income at the beginning of the loan to 6.6% at the end. 

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