Median home prices in the fourth quarter of 2019 were unaffordable for average wage earners in 71 percent of the U.S. counties, according to a report from ATTOM Data Solutions.
That figure was down from 73 percent in third quarter and 75 percent one year ago, ATTOM found.
“Home prices rose across the country by 9 percent year-over-year in the fourth quarter of 2019, and the typical home remained a financial stretch for average wage earners,” ATTOM Chief Product Officer Todd Teta said in a release. “However, homes were actually a bit more affordable because of declining mortgage rates, combined with rising pay to overcome the continued price run-up.
“As long as people are earning more money and shelling out less to pay off home loans, the market should remain strong, with prices continuing to rise, at least in the near term,” Teta said. “Those are big ifs, but for now this report offers some decent findings for both home seekers and home sellers.”
The largest populated counties where a median-priced home in the fourth quarter of 2019 was not affordable for average wage earners included Los Angeles County, Calif.; Maricopa County (Phoenix); San Diego County, Calif.; Orange County, Calif.; and Miami-Dade County, Fla, the report found.
Counties where a median-priced home in the fourth quarter was affordable for average wage earners included Cook County (Chicago) ; Harris County (Houston); Wayne County (Detroit)I; Philadelphia County, Pa.; and Cuyahoga County (Cleveland).
The report found that home price appreciation outpaced average weekly wage growth in 369 of the 486 counties analyzed in the report, and at least 30 percent of wages were needed to buy a home in two-thirds of markets in the fourth quarter.