IRVINE, CA — ATTOM has released its fourth-quarter 2024 U.S. Home Affordability Report, revealing that median-priced homes remain unaffordable for average wage earners in 98% of analyzed counties. The study emphasizes the increasing financial challenges for prospective buyers as home prices and interest rates continue to climb.
The latest data shows that major homeownership costs—such as mortgage payments, property taxes, and insurance—consume 34% of the average national wage, up from 32.5% in the previous quarter. This figure exceeds the 28% lending guideline followed by many lenders, marking the highest burden on wages since the housing market crash of the late 2000s.
Rob Barber, CEO of ATTOM, highlighted the mounting difficulties for buyers. “The U.S. housing market continues to generate great profits for most home sellers but also more and more financial stress for would-be buyers. Average workers now must shell out a larger portion of their wages for major home-ownership expenses than at any time since right before the housing market tanked in the late 2000s.” He cautioned that prolonged unaffordability could deter more buyers.
The national median home price reached an all-time high of $364,750, a 2.1% quarterly and 11.4% annual increase. Rising home costs have outpaced wage growth in three-quarters of the analyzed counties, further straining affordability.
Regions show significant disparities in affordability. Major expenses in costly markets like Los Angeles County, CA, and Miami-Dade County, FL, far exceed the 28% wage guideline, while more affordable areas include Cook County, IL, and Wayne County, MI. Across the nation, nearly one-third of markets require at least 43% of local wages for homeownership, a level considered significantly unaffordable.
The report also highlighted affordability struggles in traditionally lower-cost markets like the Northeast and Midwest, where rising prices are pushing these regions into unaffordable territory as well.
ATTOM’s analysis paints a challenging picture for middle-income buyers. With cost-to-wage ratios worsening and no signs of relief in sight, homeownership remains out of reach for many Americans.
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