What You Need to Earn to Buy a Home in These Counties
Not surprisingly, the most expensive areas are on the east and west coasts.
According to a report released by ATTOM Data Solutions, the median-priced single-family homes and condos remained less affordable in the fourth quarter of 2023 compared to historical averages. This was true in 99% of the counties included in the analysis.
ATTOM’s latest home affordability analysis shows home ownership requires historically high wages across the country. This pattern started in 2021 and the trend continued into the last quarter of 2023.
It is not surprising that the areas requiring the 20 highest annual wages required to afford a typical home are all located on either the east or west coast. Both coasts have historically seen higher home prices than the rest of the U.S.
Taking the lead in this analysis are the following counties: San Mateo, CA; Santa Clara, CA; New York, NY; Marin, CA; and San Francisco, CA. Rounding out this list are counties located in either California or New York.
In contrast, the lowest annual wages required to afford a median-priced home in the same quarter are in the following counties: Cambrian, PA; St. Lawrence, NY; Schuylkill, PA; Mercer, PA; and Macon IL.
In 57.2% of counties analyzed, annual wages of more than $75K are required to pay for major costs on median-priced homes purchased in the last quarter of 2023. However, only 11% of the counties included have average annual wages that high.
ATTOM’s home affordability report considers income needed to meet monthly home ownership expenses. These expenses include mortgage, property taxes, and insurance on a meridian-priced single-family house. The equation also assumes a 20% down payment on the property. These major expenses consume 33.7% of the average national wage, which is a level considered unaffordable by common lending standards.