flexiblefullpage - default
Currently Reading

Affordability Improves, but the Average Worker Still Struggles to Afford a Home

Advertisement
billboard - default
Affordability

Affordability Improves, but the Average Worker Still Struggles to Afford a Home

Homeownership around the U.S. continues to require historically large portions of worker wages, a new housing-affordability report finds


April 2, 2024
Hand holding house key in front of new home
Image: rangizzz / stock.adobe.com

Median-priced single-family homes and condos continued to be less affordable during Q1 2024 compared with historical averages in more than 95% of U.S. counties that have sufficient data to analyze, according to a recent 2024 U.S. Home Affordability Report from real estate data curation company,  ATTOM. 

The report also shows that 32.3% of the average national wage during Q1 went toward major expenses on median-priced homes, which is several points above common lending guidelines. While that's also a slight quarterly improvement, it's still worse than a year ago and remains at a level that makes homeownership a struggle for many as increases in home prices and major homeownership expenses have outpaced wage gains.

As a result, the portion of average wages nationwide required for typical mortgage payments, property taxes and insurance remains up almost three percentage points from a year ago and 11 points from early in 2021, right before home-mortgage rates began shooting up from their lowest levels in decades. The latest expense-to-wage ratio continues to sit above the 28 percent level preferred by mortgage lenders and marks one the highest points over the past decade.

“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.”

Read more

 

Advertisement
leaderboard2 - default

Related Stories

Affordability

The Disappearing Act That Is Middle-Income Housing

An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it

Off-Site Construction

Utah Passes Bill to Regulate Modular Construction at the State Level

Goals for housing innovation and affordability meet in the Utah's passage of a new bill that establishes a statewide modular construction program

Housing Policy + Finance

The Garden State Takes a New Approach to Expanding Affordable Housing

Recent legislation in New Jersey could provide inspiration for eliminating affordable housing hurdles in other places with strong housing markets

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.