Affordable Housing Crisis newspaper headline and related economic news, with coins.
Rising home prices continue to push homeownership further out of reach for many Americans. In the fourth quarter of 2024, affordability declined in 98% of U.S. counties analyzed by ATTOM, with home prices reaching new heights and driving the cost of homeownership to levels that average workers are finding increasingly difficult to attain.
ATTOM's latest U.S. Home Affordability Report reveals that median home prices have reached a record high of $364,750, up 11.4% year-over-year. At the same time, national wages have not kept pace, making homeownership even less attainable. Major expenses, including mortgage payments, property taxes, and insurance, now consume 34% of the average wage, far exceeding the 28% threshold typically preferred by lenders. This trend reflects significant increases both quarterly and annually, continuing a troubling three-year pattern where homeownership demands an ever-larger portion of wages.
The report found that the affordability crisis is most pronounced in areas where housing costs are already high. In markets like Los Angeles, San Diego, and Miami-Dade, rising home prices have outpaced wage growth, leading to significant affordability challenges. Coastal regions are seeing homeownership costs that consume an overwhelming portion of local wages. For instance, in Santa Cruz County, CA, ATTOM found that homeownership requires more than 115% of the area's annual wages—creating a nearly insurmountable barrier for most buyers. Similar trends are observed in other high-cost markets such as Marin County, CA, and Maui County, HI.
Meanwhile, some areas of the country have seen slightly better affordability. In parts of the Midwest and Northeast, including Cook County (Chicago) and Wayne County (Detroit), homeownership costs remain more manageable, though even these regions have experienced some erosion in affordability in recent years. Other markets like Cuyahoga County (Cleveland) and Allegheny County (Pittsburgh) have also seen more stable home prices, providing a relatively easier path to homeownership compared to high-cost areas. These regions offer lower median home prices and a more favorable wage-to-housing-cost ratio, according to ATTOM.
Despite a slight easing in mortgage rates, the report found that the overall affordability outlook remains bleak. Homebuyers in most regions continue to face financial strain, with many finding it increasingly difficult to save for a down payment, let alone manage monthly homeownership expenses. With housing costs rising faster than wages, the prospect of owning a home seems increasingly out of reach for many potential buyers across the country.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
