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| Todd Teta |
IRVINE, CA — ATTOM Data
Solutions, curator of the nation’s premier property
database and first property data provider of Data-as-a-Service (DaaS
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.
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 Harris County (Houston), Texas;
Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; Cuyahoga
County (Cleveland), Ohio; and Franklin County (Columbus), Ohio.
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).
“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
Maricopa County (Phoenix), Arizona; Riverside County, California;
San Bernardino County (Riverside), California; Tarrant
County (Dallas-Fort Worth), Texas; and Wayne County (Detroit), Michigan.
Average weekly wage growth outpaced home price appreciation
in 288 of the 480 counties analyzed in the report (60 percent), including Miami
County, Florida; Kings County, New York; Dallas County, Texas; Queens County,
New York; and Clark County, New York.
67 percent of markets require over 30 percent of wages to
buy a home
Among the 480 counties analyzed in the report, 323 (67
percent) require at least 30 percent of their annualized weekly wages to buy a
home in the second quarter of 2019.
Those counties that required the greatest percent included
Marin County (San Francisco), California (116.8 percent of annualized weekly
wages needed to buy a home); Kings County, New York (113.4 percent); Santa Cruz
County, California (112.3 percent); San Luis Obispo County, California (91.4
percent); and Maui County, Hawaii (88.2 percent).
A total of 157 of the 480 counties analyzed in the report
(33 percent) required less than 30 percent of their annualized weekly wages to
buy a home in the second quarter of 2019.
Those counties that required the smallest percent included
Bibb County (Macon), Georgia (12.9 percent of annualized weekly wages needed to
buy a home); Wayne County (Detroit), Michigan (13.2 percent); Baltimore City,
Maryland (13.6 percent); Rock Island County (Davenport), Illinois (14.9
percent); and Allen County (Lima), Ohio (14.9 percent).
61 percent of markets less affordable than historic averages
Among the 480 counties analyzed in the report, 292 (61
percent) were less affordable than their historic affordability averages in the
second quarter of 2019, up from 50 percent of counties in the previous quarter
but down from 74 percent of counties in the second quarter of 2018.
Counties that were less affordable than their historic
affordability averages included Los Angeles County, California; Harris County
(Houston), Texas; Maricopa County (Phoenix), Arizona; San Diego County,
California; and Orange County, California.
39 percent of markets more affordable than historic averages
Among the 480 counties analyzed in the report, 188 (39
percent) were more affordable than their historic affordability averages in the
second quarter of 2019, including Cook County (Chicago), Illinois; and New York
County, Suffolk County, Bronx and Nassau County – all in the New York metro area.
Counties with the highest affordability index were Warren
County (Allentown), New Jersey (158); Litchfield (Torrington), Connecticut
(139); Cumberland (Vineland), New Jersey (139); Mercer County (Trenton), New
Jersey (137); and Atlantic County (Atlantic City), New Jersey (134).
82 percent of markets post better affordability compared to
year ago
A total of 393 of the 480 counties analyzed in the report
(82 percent) posted a year-over-year increase in the affordability index,
meaning that home prices were more affordable than a year ago, including Los
Angeles County, California; Cook County (Chicago), Illinois; Harris County
(Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County,
California.
A total of 87 of the 480 counties analyzed in the report (18
percent) posted a year-over-year decrease in their affordability index, meaning
that home prices were less affordable than a year ago, including Sale Lake
County, Utah; Saint Louis County, Missouri; Marion County (Indianapolis), Indiana;
Middlesex County, New Jersey; and Jackson County (Kansas City), Missouri.
CONTACTS:
Christine Stricker
949.748.8428
Data and Report Licensing:
949.502.8313
