Home Costs Outpace Wages in 98% of U.S. Counties

Buying a typical home remained financially difficult across most of the country in the third quarter. ATTOM reviewed 583 counties and found that housing expenses were above long-term affordability levels in 98% of them. In one-third of those counties, ownership costs took more than 43% of an average worker’s pay.

The national median price for a single-family home or condo fell to $368,000, down 1% from the prior quarter and 2% from a year earlier. That improvement was outweighed by a 7.3% mortgage rate at the quarter’s end and continued inflation. National workers earned an average of $79,534 annually, while ATTOM estimated that $90,191 was needed to afford the median-priced home under its 28% housing-cost standard.

The gap was especially severe in expensive coastal counties. Kings County, New York, which includes Brooklyn, had a $1.1 million median price, with housing expenses equal to 114.1% of typical wages. Santa Cruz County, California, reached 105.5%, even after prices dropped 5% year over year. Texas offered a different picture: Harris, Dallas and Bexar counties remained below the 28% threshold, with Houston, Dallas and San Antonio ranking among more affordable large metros earlier this year.