housing affordability

home affordability

U.S. home affordability has out priced wage growth in 40 percent of U.S. Housing Markets, including Atlanta where 12 of the 21 counties in this report show that home prices are growing faster than wage increases. Most of the Georgia counties reviewed show that they are less affordable than the historic average.

ATTOM Data Solutions, curator of the nation’s premier property database and first property data provider of Data-as-a-Service (DaaS), recently released its Q2 2019 U.S. Home Affordability Report, which shows that median home prices in the second quarter of 2019 were not affordable for average wage earners in 353 of 480 U.S. counties analyzed in the report (74 percent).

The largest populated counties where a median-priced home in the second quarter of 2019 was not affordable for average wage earners included Los Angeles County, California; Cook County (Chicago), Illinois; Maricopa County (Phoenix), Arizona; San Diego County, California; and Orange County, California. In Atlanta metro area the counties where homes are not affordable for the average wage earners include Fulton, Gwinnett, Cobb, Cherokee, Henry, Forsyth, Paulding, Columbia, Douglas, Cowetta, Fayette and Bartow.

The 127 counties (26 percent of the 480 counties analyzed in the report) where a median-priced home in the second quarter of 2019 was still affordable for average wage earners included DeKalb, Clayton, Richmond, Muscogee, Hall, Bibb, Houston, Clarke and Whitfield.

The report determined affordability for average wage earners by calculating the amount of income needed to make monthly house payments — including mortgage, property taxes and insurance — on a median-priced home, assuming a 3 percent down payment and a 28 percent maximum “front-end” debt-to-income ratio. That required income was then compared to annualized average weekly wage data from the Bureau of Labor Statistics (see full methodology below).

View Q2 2019 U.S. Home Affordability Heat Map

“Despite falling mortgage rates and rising wages, the cost of owning the typical home remains out of reach or a significant financial stretch for the nation’s average wage earners,” said Todd Teta, chief product office with ATTOM Data Solutions. “However, a closer look at the data reveals milder-than-usual increases for the Spring, and none as severe as in previous years since the recession. Therefore, this can help indicate the market may be easing, following similar indicators from recent home-flipping and foreclosure data trends.”

Home price appreciation outpacing wage growth in 40 percent of markets

Home price appreciation outpaced average weekly wage growth in 192 of the 480 counties analyzed in the report (40 percent), including Fulton, Gwinnett, Clayton, Cherokee, Henry, Forsyth, Richmond, Columbia and Bartow.

Home affordability is a hot topic. We’d love to know your thoughts on it and any solutions you have.

Read our recent article – Executive Order Supports Housing Affordability.

About ATTOM Data Solutions

ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population.

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