According to ATTOM’s just released Q3 2023 U.S. Home Affordability Report, median-priced single-family homes and condos are less affordable compared to historical averages in 99 percent of U.S. counties analyzed.
ATTOM’s latest home affordability analysis noted that trend continues a two-year pattern of home ownership getting more and more difficult for average U.S. wage earners.
The Q3 2023 affordability report stated that affordability has worsened across the nation amid an increase in home prices and home-mortgage rates, which has combined to help push the typical portion of average wages nationwide required for major home-ownership expenses up to 35 percent.
Also, according to the report, that portion is considered unaffordable by common lending standards, which call for a 28 percent debt-to-income ratio. The report noted that the latest figure marks the highest level since 2007 and stands well above the 21 percent figure from early in 2021, right before home-mortgage rates began shooting up from historic lows.
ATTOM’s Q3 2023 home affordability report also found that amid the continued rebound in the U.S. housing market, annual price appreciation has outpaced weekly annualized wage changes from Q3 2022 to Q3 2023 in 47 percent of the counties analyzed. According to the report, that marked a significant change from Q2 2023 when wages were growing faster annually than prices, or shrinking less, in three-quarters of the same counties.
The report noted that the current group of the most populous counties where annual price gains are outpacing wage changes includes Cook County, (Chicago), IL; San Diego County, CA; Orange County, CA (outside Los Angeles); Miami-Dade County, FL, and King County (Seattle), WA.
In this post, we uncover the complete list of those top 10 U.S. counties where annual price gains are outpacing wage changes in Q3 2023. Rounding out that list are: Broward County, FL; Santa Clara County, CA; Alameda County, CA; New York County, NY; and Middlesex County, MA.
ATTOM’s latest home affordability report also noted that the year-over-year changes in average annualized wages have bested price movements in Q3 2023 in 53 percent of counties analyzed. According to the report, the latest group where wages are rising more annually, or declining less, than prices include Los Angeles County, CA); Harris County (Houston), TX; Maricopa County (Phoenix), AZ; Kings County (Brooklyn), NY, and Dallas County, TX.
Also in this post, we uncover the complete list of those top 10 U.S. counties with the year-over-year changes in average annualized wages have bested price movements in Q3 2023. Rounding out that list among are: Riverside County, CA; Queens County, NY; Clark County, NV; San Bernardino County, CA; and Tarrant County, TX.
ATTOM’s home affordability report determines affordability for average wage earners by calculating the amount of income needed to meet major monthly home ownership expenses — including mortgage, property taxes and insurance — on a median-priced single-family home, assuming a 20 percent down payment and a 28 percent maximum “front-end” debt-to-income ratio. That required income is then compared to annualized average weekly wage data from the Bureau of Labor Statistics.
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