Median-priced single-family homes and condos remained less affordable in the fourth quarter compared to historical averages in 99% of counties around the nation, according to the latest 2023 U.S. Home Affordability Report from ATTOM.
The new report found major expenses on median-priced homes consume 33.7% of the average national wage in the fourth quarter – a level that is considered unaffordable by common lending standards. ATTOM cited historical levels in noting how median home ownership costs in 572 of the 580 counties analyzed for its report were less affordable than in the past. That number is virtually the same as in the third quarter and up slightly from the fourth quarter of last year – but it is also more than double the figure from two years ago.
The counties with the largest populations that are unaffordable in the fourth quarter are Los Angeles County in California, Maricopa County (Phoenix) in Arizona, San Diego and Orange Counties in California and Kings County (Brooklyn) in New York.
“The good news is that home affordability has stopped getting tougher around the U.S., at least for the moment. The bad news is that owning a home remains more of a financial stretch than it’s been for many years,” said Rob Barber, CEO for ATTOM. “The annual Fall slowdown in the housing market clearly has helped stem the tide working against potential purchasers. Whether that’s just a temporary thing tied to seasonal market patterns is something we won’t know until next year, especially given recent signs that interest rates are coming down. But for now, there is some break into the growing financial stress for house hunters.”
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