Updated: Oct 5, 2018
Buying A Home Now Out Of Reach For Most Consumers?
Rental Home Investors Beware! Home Prices Less Affordable Than Historic Averages In 78 Percent of Local Markets; 30 Percent of Population in Markets Requiring $100,000+ in Annual Income to Buy a Home.
Aly J. Yale Contributor
“ Daren Blomquist, ATTOM’s senior vice president, attributes the drop in affordability to rising mortgage rates. He also says it’s changing where Americans decide to live.
U.S. Census net migration data shows negative net migration in more than two-thirds of those highest-priced markets,” he said. “More than three-quarters of markets requiring annual income less than $100,000 to buy a home posted positive net migration, indicating that home affordability is at least one factor driving recent migration patterns.”To make matters worse, home price appreciation outpaced income growth in 86% of counties analyzed. The worst offenders were Los Angeles County, California; Cook County, Illinois; Harris County, Texas; Maricopa County, Arizona; and Miami-Dade County, Florida.
In 84% of counties, the average wage earner could not afford to buy a home.
According to the Home Affordability Report from ATTOM Data Solutions, nearly 16% of Americans live in a county where buying a median-priced home requires an annual salary of $100,000 or more. In total, median-priced homes in 344 out of 440 counties were unaffordable last quarter, at least by historical standards.
Though home price growth has slowed in recent months, it appears any celebrations may be too early. A new report shows housing affordability has now hit a 10-year low. Last quarter, U.S. homes dropped to their least affordable point since 2008...read more