Home Ownership Nightmare: Is The Dream of Owning a Home Slipping Away For Average Americans?

The latest report from ATTOM, a leading curator of land, property data, and real estate analytics, reveals that home ownership remains an unaffordable dream for many average American workers. Despite a slight ease in affordability in the third quarter of 2024, the reality is that owning a home continues to be a financially demanding goal. In fact, the report highlights that major home-ownership expenses still consume 33.5% of the average national wage, which is significantly higher than the 28% lending guideline.

The data shows that home prices continue to rise, reaching an all-time high of $365,000 in the third quarter of 2024. This, coupled with mortgage rates remaining above 6%, means that the cost of owning a home is still substantially high. In addition, property taxes continue to increase across the country, making it even more difficult for average workers to make ends meet.

Although the report notes a slight improvement in affordability, with a 3% decrease in the typical cost of major home-ownership expenses, the overall picture remains bleak. According to the data, median home ownership costs in 575 of the 578 counties analyzed in the third quarter of 2024 are less affordable than in the past. This means that many average American workers are finding themselves priced out of the housing market, with little hope of saving for a down payment or securing a mortgage.

The unaffordability of home ownership is not limited to specific areas, but rather is a widespread issue affecting many parts of the country. In fact, the report identifies the counties with the largest populations that are unaffordable in the third quarter of 2024 as Los Angeles County, CA; Cook County (Chicago), IL; Maricopa County (Phoenix), AZ; San Diego County, CA, and Orange County, CA (outside Los Angeles).

In contrast, the most populous counties with affordable levels of major expenses on median-priced homes are Harris County (Houston), TX; Wayne County (Detroit), MI; Philadelphia County, PA; Cuyahoga County (Cleveland), OH, and Allegheny County (Pittsburgh), PA. These areas offer a glimmer of hope for average American workers, but even in these counties, the challenges of home ownership remain significant.

The CEO of ATTOM, Rob Barber, notes that home affordability continues to ease, but remains at historically low levels. According to Barber, the cost of owning a home across much of the nation remains a tough go for average workers, exceeding levels preferred by banks and other lenders. However, the decline in mortgage rates is acting as a counterweight, and the slow pace of home price growth in some areas is beginning to ease the pressure on home buyers.

The report highlights the complexity of the home ownership issue, which is influenced by a mix of factors including rising home prices, increasing property taxes, and fluctuating mortgage rates. While the recent decline in mortgage rates may offer some respite for home buyers, it remains to be seen whether this trend will continue and have a lasting impact on home affordability. In the meantime, average American workers continue to face an uphill battle when it comes to achieving the dream of home ownership.