Alameda County, Calif.; Orange County, Calif.; Santa Cruz County, Calif.; Kings County, N.Y.; and Napa County, Calif., were among the top U.S. counties with the highest annual wages required to afford typical homes in the fourth quarter, according to ATTOM.
In Alameda County, the income needed to purchase a median-priced home for the area was $273,764. In Orange County, the income needed was $272,903, while in Santa Cruz County, it was $262,088. In Kings County, the income needed was $239,462, and in Napa County, it was $220,009.
Overall, ATTOM’s Q4 2023 U.S. Home Affordability Report shows that median-priced single-family homes and condos remained less affordable compared to historical averages in 99% of counties analyzed.
Cambria County, Pa.; St. Lawrence County (Canton), N.Y.; Schuylkill County, Pa. (outside Allentown); Mercer County, Pa.; and Macon County (Decatur), Ill., were the counties where the lowest annual wages required to afford typical homes in the fourth quarter.
In Cambria County, the income needed to purchase a median-priced home for the area was $19,978, while in St. Lawrence County, it was $25,275, in Schuylkill County, it was $27,325, in Mercer County, it was $27,565 and in Macon County, it was $28,655.
The report determines affordability for average wage earners by calculating the amount of income needed to meet major monthly home ownership expenses — including mortgage, property taxes and insurance — on a median-priced single-family home, assuming a 20 percent down payment and a 28 percent maximum “front-end” debt-to-income ratio. That required income is then compared to annualized average weekly wage data from the Bureau of Labor Statistics.
Photo: Ian MacDonald