Average Americans cant afford a home in 70% of the country

Mar 2012
53,876
35,669
New Hampshire
#1
Even with rising wages and falling mortgage rates, Americans can't afford a home in more than 70 percent of the country. Out of 473 U.S. counties analyzed in a report, 335 listed median home prices more than what average wage earners could afford, according to a report from ATTOM Data Solutions.

New York City claimed the largest share of a person's income to purchase a home, according to the report. While average earners nationwide need to spend only about one-third of their income on a home, residents in Brooklyn and Manhattan must shell out more than 115 percent of their income.

Today's market is also more affordable than it was 10 years ago, before the housing crisis. Pre-Great Recession, home prices were higher or about the same, and income -- even adjusted for inflation -- was lower. But offsetting those conditions was rampant subprime mortgage lending, which allowed many people to buy homes they really couldn't afford.

Average Americans can't afford a home in 70 percent of the country
 
Likes: The Man
Jul 2011
54,518
10,511
NYC
#2
115% of their income? that doesn't sound right. and while it does cost more to live in NYC, you also don't need a car and pay little to know property tax if you own.
 
Mar 2012
53,876
35,669
New Hampshire
#3
115% of their income? that doesn't sound right. and while it does cost more to live in NYC, you also don't need a car and pay little to know property tax if you own.
I wish it were broken down a bit more as well. I assume people in NYC make a lot more. But overall if the average household income is 60K and the average price of a home is 300K thats very unaffordable. Most banks roughly assume with a 50K annual income the most one can buy a home for is around 250K (assuming 10% down and property tax). Then add in college debt or other debt and it goes down further.
 
Mar 2019
279
288
God's Country
#4
Part of the problem is that we have a segment of the population with:

-Worthless college degrees
-An overly high opinion of themselves
-no work ethic
-and believe they are owed something
 
Likes: bmanmcfly
Jul 2011
54,518
10,511
NYC
#5
I wish it were broken down a bit more as well. I assume people in NYC make a lot more. But overall if the average household income is 60K and the average price of a home is 300K thats very unaffordable. Most banks roughly assume with a 50K annual income the most one can buy a home for is around 250K (assuming 10% down and property tax). Then add in college debt or other debt and it goes down further.
Ahhh, so they are taking the average income and applying it to the above average cost of apartments in the city.
 

Ian Jeffrey

Council Hall
Mar 2013
73,169
41,379
Vulcan, down the street from Darth Vader
#6
Ahhh, so they are taking the average income and applying it to the above average cost of apartments in the city.
I think, in the case you quoted, @bajisima was talking about the local averages - i.e., average income in NYC compared to average home prices. Per Google, in 2018 the average annual salary in Manhattan was around $69.5K, while the average home cost in Manhatten is about $681K. (Other areas of NYC are different, of course.)
 

highway234

Former Staff
Feb 2010
16,190
6,813
Where'm I At, Doe?
#7
Part of the problem is that we have a segment of the population with:

-Worthless college degrees
-An overly high opinion of themselves
-no work ethic
-and believe they are owed something
I like the idea that in a society where no one can afford a house, everyone thinks they are owed one. It's cognitive dissonance taken to a whole new level.
 
Likes: publius3
Dec 2018
2,403
886
Florida
#8
Part of the problem is that we have a segment of the population with:

-Worthless college degrees
-An overly high opinion of themselves
-no work ethic
-and believe they are owed something
Idk how much that applies here. I mean the degree is “worthless” in the sense that money was spent to get it, but it provides no value to the holder or their employers. My degree is worthless to my employer, but they still ask for a degree. One of our best employees has no college degree or classes and she kicks ass. So it is kinda crap that they ask for one.
 
Jun 2014
45,611
45,025
United States
#9
Even with rising wages and falling mortgage rates, Americans can't afford a home in more than 70 percent of the country.

The only wage increases that we've seen lately are for very low paying jobs such as at Walmart. A wage increase from $7.25 per hour to $9.50 per hour is statistically significant, but it still won't make a mortgage payment.
 
Jan 2019
772
260
Tempe, AZ
#10
Where we have our 2nd home (an RV full time on an owned lot) at an RV resort on a lake about 80 minutes from our 1st home, one could live super cheap there. For starting at $60K, you can own a park model home AND the lot. Included in the low $260 quarterly POA fee is a well heated (year round) Olympic size pool, lake access with free dock to moor your boat, tennis court, shuffleboard court, horseshoe courts, a huge clubhouse, a pool house with billiard & table tennis tables & dart boards, a library, several shower & laundry buildings. Lawn maintenance is included! :D

When we 1st bought there, the POA fees were $225/quarter, so they haven't gone up that much in 6 years. :cool:
 
Likes: Thx1138

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