Third Quarter Home Affordability Improves
Home affordability improved in the third quarter in 60 percent of 406 U.S. counties analyzed by ATTOM Data Solutions, Irvine, Calif., although affordability was still worse off than a year ago in 79 percent of those counties.
The company’s Q3 2017 U.S. Home Affordability Index increased compared to the previous quarter in 243 counties analyzed in the report (60 percent), including Los Angeles County; Cook County (Chicago), Harris County (Houston); Maricopa County (Phoenix); and San Diego County.
The index decreased in the third quarter in 163 (40 percent) counties analyzed, including Wayne County (Detroit); Middlesex County (Boston); along with three counties in the New York metro area: Suffolk, Bronx and Westchester.
The national home affordability index stood at 100 in the third quarter, the lowest since Q3 2008 (86).
“Falling interest rates in the third quarter provided enough of a cushion to counteract rising home prices in most U.S. markets and provide at least some temporary relief for the home affordability crunch,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “More sustainable relief for the affordability crunch, however, will need to be some combination of slowing home price appreciation and accelerating wage growth. Wage growth is outpacing home price growth in about half of all local markets so far this year, an indication that a more sustainable affordability pattern is taking shape in more local markets.”
The report said home prices were less affordable than their historic affordability averages in 184 counties (45 percent), down from 49 percent in the previous quarter but still up from 21 percent a year ago. Counties with the lowest affordability index were Lackawanna County (Scranton), Pa. (72); Genesee County (Flint), Mich. (76); Comal County (San Antonio), Texas (77); Brazoria County (Houston), Texas (77); and Parker County (Dallas), Texas (78).
