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Simply Unaffordable! Home Affordability in the US Sinks to Lowest Point Since 2007, Home Prices UP 35%, Mortgage Rates UP 148% Under Biden (Mortgage Purchase Applications DOWN 12% YoY)
Confounded Interest ^ | 07/03/2024 | Anthony B. Sanders

Posted on 07/03/2024 4:35:35 AM PDT by Kaiser8408a

Housing in the US is simply unaffordable. Particularly since home prices and mortgage rates have soared undier Biden.

.Owning a house is less affordable for average earners in the US than at anytime in 17 years.

The costs of a typical home — including mortgage payments, property insurance and taxes — consumed 35.1% of the average wage in the second quarter, the highest share since 2007 and up from 32.1% a year earlier, according to a new report from Attom.

Growth in expenses, along with mortgage rates hovering around 7%, have outpaced income gains as a persistent shortage of listings pushed the median home price to a record-high $360,000, Attom said. In more than a third of US markets, ownership costs ate up 43% of average local wages, far above the 28% considered to be a guideline for affordability.

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The latest data “presents a clear challenge for homebuyers,” Rob Barber, chief executive officer of Attom, said in a statement. “It’s common for these trends to intensify during the spring buying season when buyer demand increases. However, the trends this year are particularly challenging for house hunters.”

Pricey markets in the West and Northeast had the biggest declines in affordability, including Orange and Alameda counties in California, and Brooklyn and Nassau County in New York.

Among the 589 counties analyzed, 582, or 98.8%, were less affordable in the second quarter than their historic affordability averages, Attom said.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS:

1 posted on 07/03/2024 4:35:35 AM PDT by Kaiser8408a
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To: Kaiser8408a

This is sad.


2 posted on 07/03/2024 4:38:47 AM PDT by johniegrad
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To: Kaiser8408a

The only existential threat to humanity is climate change - Joe Biden


3 posted on 07/03/2024 4:39:03 AM PDT by McGruff (Don't underestimate Joe's ability to f*** things up - Barack Obama)
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To: Kaiser8408a

Because with inflation so high only hard assets retain value.


4 posted on 07/03/2024 4:42:19 AM PDT by Bayard
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To: Kaiser8408a

while i agree with the premise, stories such as these are meaningless....

what’s a “typical home”? I own a 2000 sf home on 1/2 an acre in a nice suburb in western NY. taxes and insurance, etc., total about $7K a year. I could sell it for $350K or so. Put it in a comparable neighbor hood in Nassau County and taxes/insurance would be $25K/year and it would sell for about $1-million.

likewise, what’s an “average earner”? minimum wage job? 100K income? $200K?......?


5 posted on 07/03/2024 4:44:58 AM PDT by wny
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To: Kaiser8408a

Stop importing illegals.


6 posted on 07/03/2024 4:48:06 AM PDT by Ikeon
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To: Kaiser8408a

This doesn’t even account for the government theft via property taxes. Freaking crazy how they’re valuing our houses these days.


7 posted on 07/03/2024 4:58:16 AM PDT by TermLimits4All ("If you stand for nothing, you'll fall for anything.")
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To: Kaiser8408a
robert-palmer
8 posted on 07/03/2024 5:31:39 AM PDT by The Louiswu (Pray for Peace in the world.)
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To: Kaiser8408a
I'm dumbfounded that nobody ever says, hey, we've been bringing in all these people, 1 out of 4 or 5 people are foreign born now, and nobody thinks this causes prices to rise.

That and add on the Feds criminal mismanagement of interest rates, too low too long, and this is what you get. In fact they can't wait to cut them.

A country of morons!

9 posted on 07/03/2024 5:39:16 AM PDT by Vision (Woke is communism and it has no place in America. Election Reform Now! Obama is an evildoer.)
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To: The Louiswu

My house is selling. It’s easy. Just find a cash buyer. This one’s 70+ years old.


10 posted on 07/03/2024 5:39:28 AM PDT by DIRTYSECRET
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To: wny

We bought our small 3 bedroom, 2 bath CBS home on 2 acres here in Florida for $80,000 8 years ago. Now people are “wanting to buy” my house for $300,000. Ridiculous...


11 posted on 07/03/2024 5:41:37 AM PDT by jeffc (Resident of the free State of Florida)
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To: Kaiser8408a

You’ll own nothing and be happy!


12 posted on 07/03/2024 6:49:11 AM PDT by Tommy Revolts (,,)
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To: Kaiser8408a

Not if you are an illegal alien getting NGO cash.


13 posted on 07/03/2024 8:58:41 AM PDT by Organic Panic (Democrats. Memories as short as Joe Biden's eyes)
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To: Kaiser8408a

For years, it was an article of faith around here that interest rates in general and mortgage rates in particular were being held artificially low for nefarious political purposes and that this was a Bad Thing.

So now mortgage rates are up 148% ... isn’t that a Good Thing?


14 posted on 07/03/2024 9:00:40 AM PDT by NorthMountain (... the right of the people to keep and bear arms shall not be infringed)
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To: Kaiser8408a

If they were “unaffordable”, they wouldn’t be selling like hotcakes.


15 posted on 07/03/2024 9:02:15 AM PDT by Jim Noble (Assez de mensonges et de phrases)
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To: Kaiser8408a
Clearly, they are affordable to somebody - even if it is Blackstone.

Supply constraints caused by local government zoning and regulations are the big issue right now. After a moderate easing through 2026 due to projects that were in the pipeline before COVID finally being completed, there is going to be an epic supply shortage starting in 2027. Coupled with a weakening dollar, it would not be a surprise to see housing prices double again in nominal terms by the mid-2030’s.

Don’t expect another 2008 event in our lifetimes. Government will have to put 100 million new “Americans” somewhere, and whether they buy your house or steal it their policies are going to keep discouraging builders from starting new entry-level developments for a long time to come.

16 posted on 07/03/2024 11:47:37 AM PDT by Mr. Jeeves ([CTRL]-[GALT]-[DELETE])
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