Home affordability has hit its best level in two years for average U.S. wage earners, according to ATTOM Data Solutions. Unfortunately, it comes at a strange time where home buying and consumer confidence is slipping due to the COVID-19 pandemic.
"The 2020 U.S. Home Affordability Report, which shows that median home prices in the first quarter of 2020 are unaffordable for average wage earners in 319 of 483, or 66 percent of the U.S. counties analyzed in the report," according to the data.
However, that figure is down from 70.4 percent in the fourth quarter of 2019 and 69.8 percent from the first quarter of 2019, according to the report.
"Home affordability has inched ahead this year across the United States as buying a house or a condo gets closer and closer to the level where the average wage earner can swing the deal within standard lending guidelines. While the national median price still remains a bit out of reach for the average wage earner, the affordability gap has narrowed to the smallest point in more than two years," said Todd Teta, chief product officer with ATTOM Data Solutions.
"It seems bizarre that median home prices have risen 8 percent over the past 12 years while average wages grew by less than half that amount. But falling interest rates continue making up the difference, dropping monthly home ownership payments in a majority of the country."
To learn more about ATTOM's 2020 U.S. Home Affordability Report, click here.