IRVINE, CA — A new report from ATTOM reveals that housing affordability in the United States remains at historically low levels, with the cost of owning a median-priced home demanding a larger share of wages than at any time since the late 2000s housing crash.
The fourth-quarter 2024 U.S. Home Affordability Report highlights that 98 percent of counties analyzed are less affordable now compared to historical norms. Major home ownership expenses — including mortgage payments, property taxes, and insurance — currently consume 34 percent of average national wages, far exceeding the 28 percent guideline preferred by lenders.
The national median home price has climbed to $364,750, up 11.4 percent from the same period last year, while mortgage rates remain above 6 percent despite recent declines. Combined, these factors are making home ownership increasingly out of reach for average workers.
“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,” said Rob Barber, CEO of ATTOM. He added, “At some point, something’s got to give, or a growing number of buyers will have no choice but to toss in the towel and wait for home ownership to become more affordable.”
Many of the nation’s top housing markets, including Los Angeles County, CA; Maricopa County, AZ; and Miami-Dade County, FL, remain unaffordable for local wage earners. However, more affordable areas include Cook County, IL, and Harris County, TX, where the cost of owning a home consumes a smaller portion of average wages.
The report also notes that financial pressures from home ownership have intensified in more affordable regions, with affordability deteriorating markedly in lower-priced markets across the Northeast and Midwest.
With the typical owner now needing an annual income 21 percent higher than the national average to afford a median-price home, the report underscores mounting challenges for homebuyers nationwide.
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