Median home prices in the third quarter of 2019 were not affordable for average wage earners in 74 percent of U.S. counties, according to ATTOM Data Solutions Q3 2019 U.S. Home Affordability Report.
According to the report, areas where a median-priced home in the third quarter of 2019 were not affordable for average wage earners included Los Angeles County, Calif.; Cook County (Chicago), Ill.; Maricopa County (Phoenix), Ariz.; and San Diego County and Orange County, Calif.
“Buying a home continues to be a rough road to navigate for the average wage earner in the United States,” ATTOM Chief Product Officer Todd Teta said in a release. “Prices are going up substantially faster than earnings in 2019 without any immediate end in sight, which continues to make home ownership difficult or impossible for a majority of single-income households and even for many families with two incomes.
“If there is any silver lining to the picture, it’s that mortgage rates have fallen back to historic lows,” Teta said. “That’s softening the blow of rising prices and actually making homeownership a bit more attainable in most areas of the country.”
During the third quarter, ATTOM said a median-priced home still was affordable for average wage earners in 26 percent of the counties it analyzed, including in Harris County (Houston), Texas; Wayne County (Detroit), Mich.; Philadelphia County, Pa.; Cuyahoga County (Cleveland), Ohio; and Allegany County (Columbus), Ohio.
ATTOM said at least 30 percent of a person’s annualized weekly wages were needed to buy a home in 67 percent of the counties it analyzed, including in Kings County (Brooklyn), N.Y. (110.4 percent); Santa Cruz County, Calif. (105 percent); Marin County (San Francisco), Calif. (102.4 percent); Maui County, Hawaii (87.9 percent); and Monterey County, Calif. (87.5 percent).
During the third quarter, there were counties where less than least 30 percent of a person’s annualized weekly wages was needed to buy a median-priced home, ATTOM found. Those counties included Calhoun County (Battle Creek), Mich. (14.4 percent ); Wayne County (Detroit), Mich. (14.9 percent); Clayton County (Atlanta), Ga. (15.2 percent); Rock Island County (Davenport), Ill. 15.5 percent); and Montgomery County, Ala. (16.2 percent).