Median-priced single-family homes and condos remained less affordable during the first quarter of this year compared to historical averages in more than 95% of counties around the U.S., according to a new data report from ATTOM.
The report found the major expenses on median-priced homes consumed 32.3% of the average national wage in the first quarter, several points above common lending guidelines. Compared to historical levels, median home ownership costs in 577 of the 590 counties analyzed by ATTOM were less affordable than in the past – down from 584 of the same counties in the fourth quarter of 2023 but up from 549 in the first quarter of last year, and more than 10 times the figure from early 2021.
“The picture for home buyers is brightening a little again as affordability measures have improved for the second quarter in a row,” said Rob Barber, CEO for ATTOM. “For sure, it’s not like things are coming up roses for house hunters. Affording a home remains a financial stretch, or a pipe dream, for so many households. But with mortgage rates coming down and home prices growing only by modest amounts, it’s gotten a bit easier for average wage earners to afford a home so far this year. The upcoming Spring buying season will say a lot about whether home prices remain stable enough for this trend to continue.”
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