(Gray News) – Home prices continue to rise in the U.S. and a new report says home ownership is becoming the least affordable for many Americans in nearly 20 years.
ATTOM, a curator of land, property and real estate data, released its second-quarter 2024 U.S. Home Affordability Report earlier this month.
The report showed that median-priced single-family homes and condos remained less affordable in the second quarter of 2024 compared to historical averages in 99% of counties around the nation.
ATTOM reports that major expenses on median-priced homes consumed 35.1% of the average national wage in the second quarter, marking the highest percentage seen since 2007.
“The latest affordability data presents a clear challenge for home buyers. While home prices are increasing and mortgage rates remain relatively high, these factors are making homes less affordable,” said Rob Barber, CEO for ATTOM.
According to the report, the national median home price spiked to a new high of $360,000 during this year’s spring buying season, leading to increases in the cost of owning a home outpacing wage increases, with mortgage rates remaining around 7%.
“It’s common for these trends to intensify during the Spring buying season when buyer demand increases. However, the trends this year are particularly challenging for house hunters, more so than at any point since the housing market boom began in 2012,” Barber said.
Last month, CNN reported that the price of owning a home has been rising sharply over the last few years for expenses more than just mortgage payments.
U.S. homeowners are paying an average of $18,118 a year for property taxes, homeowners’ insurance, maintenance, energy and various other expenses, according to a June Bankrate study.
That number represents a reported 26% increase from four years ago when it cost $14,428 annually to own and maintain a home.
Counties with the largest populations that were considered unaffordable according to ATTOM were Los Angeles County, Cook County (Chicago), Maricopa County (Phoenix), San Diego County and Orange County (outside Los Angeles).
According to the report, the most populous of the 115 counties that were considered to be affordable were Harris County (Houston), Wayne County (Detroit), Philadelphia County, Cuyahoga County (Cleveland), and Allegheny County (Pittsburgh).
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