Simply Unaffordable! Median-Priced Homes Not Affordable for Average Wage Earners in 74 Percent of U.S. Housing Markets

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.

 

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