IRVINE, CA — ATTOM has released its third-quarter 2024 U.S. Home Affordability Report, revealing that median-priced single-family homes and condos remain largely unaffordable for the average American worker. The report indicates that 99 percent of counties analyzed show homes are less affordable compared to historical averages, continuing a trend that began in early 2022.
The data shows that major home expenses consume 33.5 percent of the average national wage, a slight improvement from the previous quarter but still above the preferred 28 percent lending guideline. While the national median home price has climbed to $365,000, mortgage rates have declined slightly, now hovering above 6 percent, which continues to exert pressure on homebuyers.
Rob Barber, CEO of ATTOM, commented on the current market conditions, stating, “Home affordability continues to show signs of easing, which lightens the pressure on house hunters struggling to find a place that fits their budget.” He noted that lower interest rates are beneficial for buyers, but cautioned against potential demand spikes that could drive prices up further due to limited housing supply.
Despite some improvements, home ownership remains a stretch for many, with mortgage payments, property taxes, and insurance costs taking up a significant portion of wages. The report highlights that these expenses have decreased by 3 percent over the summer, aiding affordability slightly as wages have grown. Yet, the proportion of income needed for home ownership continues to exceed recommended levels in the majority of the 578 counties analyzed.
Counties like Los Angeles, Cook, and Maricopa remain among the least affordable, while areas such as Harris County in Houston and Wayne County in Detroit offer relatively better affordability. The report underscores ongoing affordability challenges, with wages required to comfortably afford homes significantly above the national average, posing obstacles for many potential buyers.
Despite the challenges, the report indicates a positive direction with slight improvements in affordability, driven by falling mortgage rates and slower home price increases. However, sustained improvements will depend on balancing market forces to ensure housing becomes more accessible for average workers across the nation.
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