Is Buying A Home Still Affordable?
Homeownership is a major financial commitment. Not only does it mean a monthly mortgage payment but it also comes with other expenses like property tax and homeowners insurance that add to the cost.
So with home-price increases in the news, it's natural to wonder whether buying a home is still affordable. ATTOM Data Solutions' second-quarter 2021 U.S. Home Affordability Report has some answers.
The report takes homeownership costs on a median-priced home and wage data from the Bureau of Labor Statistics and compares them to historical averages. The results found 61 percent of counties were less affordable now than they've been in the past.
However, though more expensive in those counties, homeownership isn't beyond the average worker's financial means. Todd Teta, ATTOM's chief product officer, says it's still within reach for the average American.
“Average workers across the country can still manage the major expenses of owning a home, based on lender standards,” Teta said.
“But things have gone in the wrong direction this quarter in a majority of markets as the national housing market boom roars onward.”