In the second quarter of 2024, housing affordability worsened across 98.8% of U.S. counties compared to historical averages, according to a recent report from Attom Data Solutions. Rising home prices and mortgage rates have made homeownership increasingly unattainable for many Americans.
Attom Data Solutions CEO Rob Barber highlighted the challenges facing homebuyers, stating, “The latest affordability data presents a clear challenge for home buyers.”
However, amidst this trend, a small number of counties—just 1.2% of those analyzed—experienced an improvement in home affordability during the same period. These seven counties include:
- Calhoun County, Alabama
- Macon County, Illinois
- San Francisco County, California
- Ontario County, New York (outside Rochester)
- Mercer County, Pennsylvania (north of Pittsburgh)
- New York County, New York (Manhattan)
- Calcasieu County, Louisiana
Despite these improvements, homes in some of these areas remain prohibitively expensive. For instance, in New York County, a typical home would require an annual income of $407,000 for comfortable affordability, while in San Francisco, the required income is nearly $340,000.
Attom determined affordability based on the income needed to cover major monthly expenses for a median-priced single-family home, assuming a 20% down payment and monthly housing costs not exceeding 28% of gross monthly income.
The report underscores the broader challenges in today’s housing market, where record-high housing costs are squeezing potential homebuyers. The national median home price reached a new peak of $360,000, translating to a monthly housing cost of $2,114, including mortgage payments, insurance, and property taxes.
With wages lagging behind home price growth, housing affordability has become increasingly strained. In the second quarter of 2024, the monthly cost of homeownership accounted for 35.1% of the average national wage of $72,358—the highest level since 2007.
While some rural counties offer more favorable affordability conditions, many buyers may need to consider relocating to access them. Places like Cambria County, Pennsylvania, and Macon County, Illinois, were identified as areas where housing costs consume a smaller portion of local wages.
Looking ahead, there is cautious optimism that mortgage rates may decrease later in the year, potentially easing the burden on homebuyers. Despite recent rate increases, Freddie Mac’s Chief Economist Sam Khater anticipates moderation in price growth with additional inventory, which could benefit prospective buyers.
