For average earners in the US, owning a home is less affordable than at any time in 17 years.
The Zhitong Finance App learned that for ordinary earners in the US, the affordability of owning a home is lower than at any time in 17 years. Attom's latest report shows that in the second quarter, typical US housing costs, including mortgage payments, property insurance, and taxes, accounted for 35.1% of the average US wage, the highest ratio since 2007, up from 32.1% in the same period last year.
According to Attom, the increase in spending and mortgage interest rates hovering around 7% have surpassed income growth, as a continued shortage of housing has pushed median housing prices to a record high of 360,000 US dollars. In more than one-third of the US market, the cost of buying a home accounts for 43% of the average local wage, which is far above the 28% affordability standard.
The latest data “poses a clear challenge for homebuyers,” ATTOM CEO Rob Barber said in a statement. “During the spring home buying season, buyer demand increases, and these trends usually intensify. However, this year's trends are particularly challenging for homebuyers.”
The western and northeastern high-price markets saw the biggest decline in affordability, including Orange County and Alameda County in California, and Brooklyn County and Nassau County in New York State.
Of the 589 counties analyzed, 582 counties, or 98.8%, were less affordable in the second quarter than their historical affordability average, Attom said.