US housing is simply unaffordable since home price appreciation outpacing wage growth in 40 percent of markets, according to Attom Data Solutions. And Median-Priced Homes are not affordable for average wage earners in 74% of U.S. housing markets
The most unaffordable counties, the reported noted, were in Los Angeles County, California; Cook County (Chicago), Illinois; Maricopa County (Phoenix), Arizona; San Diego County, California; and Orange County, California.
House price appreciation outpaced weekly wage growth in 40%, or 192 of the 480 counties, including Maricopa County (Phoenix), Arizona; Riverside County, California; San Bernardino County (Riverside), California; Tarrant County (Dallas-Fort Worth), Texas; and Wayne County (Detroit), Michigan.
For Americans who feel financially overwhelmed with unaffordable housing, the report does show 26%, or 127 counties examined, had affordable housing in Harris County (Houston), Texas; Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; Cuyahoga County (Cleveland), Ohio; and Franklin County (Columbus), Ohio.
ATTOM calculated the affordability of each county by examining the amount of income needed to make monthly house payments (assume a 3% down payment and a 28% maximum “front-end” debt-to-income ratio) — including mortgage, property taxes, and insurance.