Housing affordability is at the lowest level since 2007
Taylor Morrison CEO Sheryl Palmer discusses the headwinds facing the housing market after a drop in August on existing home sales on 'The Claman Countdown.'
Housing prices are growing more unaffordable in the U.S., as high mortgage rates and rising home prices put ownership out of reach for millions of Americans.
That's according to a new report published by real estate data provider ATTOM, which examined 572 U.S. counties and determined that median-priced homes in about 80% of those areas are out of reach for the average income earner, who makes about $71,214 annually.
«The latest affordability data presents a clear challenge for home buyers,» said Rob Barber, CEO of ATTOM. «While home prices are increasing and mortgage rates remain relatively high, these factors are making homes less affordable.»
Affordability is worsening across the country, thanks to a second-quarter spike in both home prices and mortgage rates. Combined, the two have helped to push the typical portion of average wages nationwide required for major homeownership expenses up to 35.1% – the highest level since 2007.
WHY CAN'T YOU FIND A HOUSE FOR SALE?
Affordability is worsening across the country, thanks to a third-quarter spike in both home prices and mortgage rates. (Andrew Caballero-Reynolds/AFP via / Getty Images)
«The latest number is considered unaffordable by common lending standards, which call for a 28% debt-to-income ratio,» the report said. «It marks the highest level since 2007 and stands well above the 21% figure from early in 2021, right before home-mortgage rates began shooting up from historic lows.»
Compared to historical levels, median homeownership costs in 582 of the 589 counties examined during the second quarter of 2024 were
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