DataMarkets & Economy

Housing affordability plunges in majority of markets, Attom says

Deteriorating wage growth and rising home prices bringing some major markets to low affordability levels
  • A new home affordability report shows 24 percent of markets are less affordable than their historical averages, up from 22 percent last quarter and 19 percent one year ago.
  • Wage growth changed its course, from 13 consecutive quarterly rises to a 0.1 percent drop this time around.
  • Some of the least affordable markets compared to their historical averages include New York City, Houston and San Francisco.

Unfortunately for first-time buyers, housing affordability is worsening across many major real estate markets, according to a new report. Attom Data Solutions' Home Affordability Index shows that 24 percent of markets are less affordable than their historical averages, up from 22 percent in the second quarter of 2016 and 19 percent one year ago. The third quarter report reveals the largest number of markets reaching historical unaffordable levels since 2009, when 47 percent of markets became less reasonable than their long-term averages. Although mortgage rates are down 45 basis points from one year ago, most markets displayed deteriorating housing affordability. Daren Blomquist, senior vice president of Attom Data Solutions, says improving affordability reported in the second quarter turned back. “There was some evidence, that in our last quarterly report, that wage growth was starting to catch up with home price growth in an increasing number of markets,” Blom...