Median home prices during the second quarter of 2019 were not affordable for average wage earners in 353 of 480 U.S. counties, according to a report from ATTOM Data Solutions.
That report found the largest populated counties where a median-priced home in the second quarter of 2019 was not affordable for average wage earners were Los Angeles County, Calif.; Cook County, Ill.; Maricopa County, Ariz.; San Diego County, Calif.; and Orange County, Calif.
The report identified 127 counties (26 percent) where a median-priced home in the second quarter of 2019 still was affordable for average wage earners, which included Harris County, Texas; Wayne County, Mich.; Philadelphia County, Pa.; Cuyahoga County, Ohio; and Franklin County, Ohio.
“Despite falling mortgage rates and rising wages, the cost of owning the typical home remains out of reach or a significant financial stretch for the nation’s average wage earners,” ATTOM Data Solutions Chief Product Officer Todd Teta said. “However, a closer look at the data reveals milder-than-usual increases for the spring, and none as severe as in previous years since the recession. Therefore, this can help indicate the market may be easing, following similar indicators from recent home-flipping and foreclosure data trends.”
ATTOM found home price appreciation outpaced average weekly wage growth in 40 percent of the counties analyzed, including Maricopa County, Ariz.; Riverside County, Calif.; San Bernardino County (Riverside), Calif.; Tarrant County, Texas; and Wayne County, Mich.
However, average weekly wage growth outpaced home price appreciation in 60 percent of the 480 counties analyzed, including in Miami County, Fla; Kings County, N.Y.; Dallas County, Texas; Queens County, N.Y.; and Clark County, N.Y.
In 67 percent of markets analyzed, more than 30 percent of wages were needed to buy a home, ATTOM found. Those counties included Marin County, Calif. (116.8 percent of annualized weekly wages needed to buy a home); Kings County, N.Y. (113.4 percent); Santa Cruz County, Calif. (112.3 percent); San Luis Obispo County, Calif. (91.4 percent); and Maui County, Hawaii (88.2 percent).