According to ATTOM’s just released Q3 2022 U.S. Home Affordability Report, median-priced single-family homes and condos are less affordable in Q4 2022 compared to historical averages in 99 percent of U.S. counties. The report notes that figure is far above the 68 percent of counties that were less affordable in Q4 2021.
ATTOM’s latest home affordability analysis also notes the portion of average wages required nationwide for typical major home-ownership expenses has risen to 32.3 percent this quarter – the highest point since 2007. That figure is up from 29.6 percent in Q3 2022 and 23.8 percent in Q4 2021.
The Q4 2022 home affordability analysis found that annual wages of more than $75,000 are needed to pay for major costs on the median-priced home purchased in Q4 2022 in 50 percent of the U.S. markets analyzed.
ATTOM’s latest report also found the top 25 highest annual wages required to afford typical homes again are on the east or west coast, led by San Mateo County (outside San Francisco), CA ($367,563); New York County (Manhattan), NY ($364,861); Marin County (outside San Francisco), CA ($349,140); San Francisco County, CA ($327,634) and Santa Clara County (San Jose), CA ($322,775).
Also, according to the report, the lowest annual wages required to afford a median-priced home in Q4 2022 are in Cambria County, PA (east of Pittsburgh) ($22,502); Schuylkill County, PA (outside Allentown) ($22,974); St. Lawrence County, NY (north of Syracuse) ($26,714); Macon County (Decatur), IL ($26,788) and Bibb County (Macon), GA ($27,332).
In this post, we uncover the complete list of those top 10 U.S. counties with the highest annual wages required to afford a median-priced home in Q4 2022. Rounding out that list are: Santa Cruz County, CA ($276,069); Alameda County, CA ($247,956); Kings County, NY ($233,906); Napa County, CA ($224,387); and Orange County, CA ($223,598).
Also in this post, we uncover the complete list of those top 10 U.S. counties with the lowest annual wages required to afford a median-priced home in Q4 2022. Rounding out that list are: Fayette County, PA ($29,475); Robeson County, NC ($29,528); Chautauqua County, NY ($30,105); Calhoun County, AL ($31,175); and Terrebonne County, LA ($31,330).
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.
ATTOM’s Q4 2022 home affordability report also notes that annual home-price appreciation has surpassed weekly annualized wage growth in Q4 2022 in 56 percent of the counties analyzed. That figure was down from 84 percent in Q3 2021. The latest group where price gains are outpacing wage gains includes Kings County (Brooklyn), NY; Miami-Dade County, FL; Dallas County, TX; Queens County, NY, and Clark County (Las Vegas), NV.
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