Current Homeownership Expenses

Recent data indicates that essential homeownership costs, including mortgage payments, property taxes, and insurance, account for 32.5% of the average national income of $74,698. This result shows minimal quarterly variation from the previous figure of 32.7% reported in Q4 2024. However, it marks a notable increase of 1.1% compared to Q1 2024 and a significant rise of 5.1% since Q1 2021.

Rob Barber, CEO of ATTOM, commented on the current market conditions: “Home affordability is in a holding pattern this quarter, financially stressful for average wage earners but not changing much. This is not unusual during the winter lull when home prices level out. A recent small decline in mortgage rates surely hasn’t hurt either for fledgling buyers.”

Widening Regional Disparities in Home Affordability

An analysis of 574 counties with populations exceeding 100,000 has revealed marked regional disparities in home affordability:

Least Affordable Regions

• Kings County, N.Y. (Brooklyn): 109.5% of wages required
• Maui County, Hawaii: 101.5%
• San Luis Obispo County, Calif.: 100.1%
• Orange County, Calif.: 97.8%
• Marin County, Calif.: 97.5%

Most Affordable Regions

• St. Lawrence County, N.Y.: 10.3% of wages required
• Mercer County, Pa.: 10.4%
• Peoria County, Ill.: 11.2%
• Jefferson County, Ala.: 11.3%
• Cambria County, Pa.: 11.5%

Trends in Home Prices

While the national median home price experienced a slight quarterly dip of 1%, settling at $351,000, it still stands 5.2% higher than recorded in Q1 2024. Notably, approximately three-quarters of the counties analyzed reported annual price increases, with a significant 11.9% rise observed in New York’s Suffolk County. Conversely, California’s Alameda County recorded the steepest decline at -11.2%.

Rob Barber also noted: “With so much economic uncertainty these days connected to investment markets, federal policy shifts, and very mixed economic forecasts, it is anyone’s guess how much prices will move.”

Disconnect Between Wage Growth and Housing Costs

The report underscores a troubling trend—the disparity between home prices and wages continues to grow. In 47% of the counties analyzed, housing costs have risen more quickly than earnings. Currently, the typical buyer requires an annual income of $86,611 to afford a home, which exceeds the average wages in 86% of the markets studied. In high-priced areas such as Manhattan, the income necessary to secure a home exceeds $386,000.

Compared to pre-pandemic levels, 96.5% of counties are experiencing lower affordability than historical averages, a sharp increase from just 4.2% in Q1 2021.

Conclusion

The full report bearing these findings can be accessed through ATTOM’s resources.