Homeownership was difficult or impossible for average wage-earners in Q3, expert says
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Average wage earners cannot afford a median-priced home in 371, or 74%, of 498 counties in the United States.
Seventy-six percent of markets saw home prices climb faster than wages in the third quarter of 2019, according to the findings of ATTOM Data Solutions’ US Home Affordability Report.
ATTOM Chief Product Officer Todd Teta said the upswing in prices continues to make homeownership difficult or impossible for a majority of single-income households and even for families with two incomes.
"Buying a home continues to be a rough road to navigate for the average wage earner in the United States,” Teta said. “If there is any silver lining to the picture, it's that mortgage rates have fallen back to historic lows. That's softening the blow of rising prices and actually making homeownership a bit more attainable in most areas of the country."
The report also showed that in 67% of 498 counties prospective buyers needed to put at least 30% of their annualized weekly income toward purchasing a home.
The worst markets for affordability included Los Angeles County, Calif.; Cook County (Chicago), Ill.; Maricopa County (Phoenix), Ariz.; San Diego County and Orange County, Calif.
Meanwhile, 26% of the counties analyzed were still affordable for an average wage earner, including Harris County (Houston), Texas; Wayne County (Detroit), Miss.; Philadelphia County, Pa.; Cuyahoga County (Cleveland), Ohio; and Allegany County (Columbus), Ohio.
