H
omes across the US remain less affordable than historical averages, with 99% of counties showing a decline in affordability compared to past trends. According to ATTOM Data's Q3 2024 report, major expenses on median-priced homes now consume 33.5% of the average national wage, exceeding the 28% benchmark preferred by lenders.

    While there has been some minor improvement in affordability measures, homeownership remains a financial stretch for many workers as the national median home price reached $365,000 this quarter. Mortgage rates have declined but remain above 6%, keeping ownership costs high. ATTOM's report shows that mortgage payments, property taxes, and insurance continue to consume a large portion of wages.

    The report calculates affordability based on the percentage of income needed for homeownership costs, including mortgage payments, taxes, and insurance. Compared to historical averages, 575 of 578 counties analyzed in Q3 2024 remain less affordable. About 80% of counties are considered unaffordable using the 28% wage-to-expense ratio guideline.

    Some areas have seen wages grow faster than home prices, but in 71% of counties, home price increases have outpaced wage growth. Nationally, it takes 33.5% of the average wage to cover major homeownership costs, down from 34.7% in the previous quarter but still above the 28% benchmark.

    The most expensive regions, particularly on the Northeast and West coasts, see ownership costs consume over 100% of average local wages. On the other end, counties with the lowest ownership costs include Cambria County, PA, and Montgomery County, AL. While homeownership remains historically unaffordable in most areas, some signs of improvement are evident, particularly in upscale markets.