DATA IN ACTION
The Home Affordability Struggle
TOP 10 U.S. COUNTIES THAT REQUIRE OVER 30 PCT OF WAGES TO BUY A HOME IN Q2 2019
PCT OF WAGES TO BUY
A TTOM Data Solutions recent- ly released its Q2 2019 U.S. Home Affordability Report, which showed that median home prices in the second quarter of 2019 were not affordable for average wage earners in 353 of 480 U.S. counties analyzed in the report (74 percent). The report determined afford- ability for average wage earners by calculating the amount of income needed to make monthly house payments — including mortgage, property taxes and insurance — on a median-priced home, assuming a three percent down payment and a 28 percent maximum “front-end” debt-to-income ratio. For instance, the nationwide BY ATTOM DATA SOLUTIONS
140.0%
median home price of $255,000 in the second quarter of 2019 would require an annual gross income of $69,366 for a buyer putting three percent down and not exceeding the recommended “front-end” debt-to-income ratio of 28 percent — meaning the buyer would not be spending more than 28 percent of his or her income on the house pay- ment, including mortgage, property taxes and insurance. That required income is higher than the $57,278 annual income earned by an aver- age wage earner based on the most recent average weekly wage data available from the Bureau of Labor Statistics, making a median-priced home nationwide not affordable for
an average wage earner. Among the 480 counties ana- lyzed in the report, 323 (67 percent) require at least 30 percent of their annualized weekly wages to buy a home in the second quarter of 2019. Those counties that required the greatest percent included Marin County (San Francisco), California (116.8 percent of annualized weekly wages needed to buy a home); Kings County, New York (113.4 percent); Santa Cruz County, California (112.3 percent); San Luis Obispo County, California (91.4 percent); and Maui County, Hawaii (88.2 percent). Here are the top ten counties that required over 30 percent of their an- nualized weekly wages to buy a home:
116.8% 113.4%
120.0%
112.3%
100.0%
91.4% 88.2% 86.9% 85.4% 84.7% 84.3% 80.1%
80.0%
60.0%
40.0%
20.0%
0.0%
Marin County, CA
Kings County, NY
Santa Cruz County, CA
San Luis Obispo County, CA
Maui County, HI
San Francisco County, CA
Napa County, CA
Monterey County, CA
Orange County, CA
Sonoma County, CA
28 think realty housing news report
september 2019 29
Made with FlippingBook Online newsletter