Even at a time of low interest rates and rising wages, Americans simply can’t afford a home in more than 70% of the country, according to CBS. Out of 473 US counties that were analyzed in a recent report, 335 listed median home prices were more than what average wage earners could afford. According to the report from ATTOM Data Solutions, these counties included Los Angeles and San Diego in California, as well as places like Maricopa County in Arizona.
New York City claimed the largest share of a person's income to purchase a home. While on average, earners nationwide needed to spend only about 33% of their income on a home, residents in Brooklyn and Manhattan need to shell out more than 115% of their income. In San Francisco this number is about 103%. Homes were found to be affordable in places like Chicago, Houston and Philadelphia.
This news is stunning because homes are considerably more affordable today than they were a year ago. Although prices are rising in many areas, they are also falling in places like Manhattan. Unaffordability in the market has been the result of slower home building and owners staying in their homes longer. Both have reduced the supply of homes in the market.
And the market may continue to create better conditions for buyers. Affordability could improve because of the fact that homes are out of reach for so many seekers, according to Todd Teta, chief product officer at ATTOM Data Solutions. Today’s market is also more affordable than it was a decade ago, before the crisis. Home prices were about the same prior to the crisis, even though income adjusted for inflation was lower.
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Thanks boomers
ReplyDeleteSorry there - not the boomers. It was Obama who destroyed the market. I'm a boomerand I lost my home to his fake presidency.
DeleteDave T: Gee, I wonder why. Since the only thing going up in the middle class world are regulations, taxes and bills. Maybe from the ivory tower, things are just hunky dory, but take a look at the "real" working world and the perspective changes dramatically. Not that anyone would care. From what I can see, the rich just want to protect their own, the politicians could care less, and we now have the absence of a justice system. I hate to sound so negative, but this is the reality facing what's left of the middle class. Good thing is it sure makes the next life look a lot more desirable.
ReplyDeleteI am middle class and saved 1700 dollars on my taxes. The new green deal would ruin me
DeleteDon't expect those numbers to improve as more and more people sell to retire then rent, current generations aren't particularly interested in owning, and investors buy up deeply discounted properties for use as rentals.
ReplyDeleteSo it is the millenniums that are the problem not the boomers.
DeleteThey can't afford a mortgage. They have student loans. They wanted to make sure everyone could attend college so they came up with student loans. Now they are saddled with debt when they graduate and the colleges are making more and more money. I wish someone would do a comparison of how much college cost before student loans and after student loans and the salaries of a professors before and after.
ReplyDeleteSo, will they all move to the 30% of places that have affordable houses for sale? Probably not.
ReplyDeleteThose libs should buy a house in North Korea .
ReplyDeleteMy opinion is most young people can not come up with the down payment. Either due to student loans or their lack of for saving .
DeleteAs the sole earner for a new family here on the shore, my wife and I can afford to have her stay at home with the kids while we rent a modest ($600/month house). Anything more than that would be pushing it as we both have student loans and other obligations. While we would love to stay here the local economy does not offer the earning potential, the desirability of the available spaces is sub-par for the price. The inflation of prices caused by our proximity to the beach and rental units for the university has sucked the quaintness from this area faster that either of us could have hoped to settle into a house.
DeleteRising wages? Not here. What a joke.
ReplyDeleteHow Important is your new car. Most people drive a house payment.
ReplyDelete