The average wage earner in 68 percent of the U.S. cannot afford the median home price in their county according to a new report. This affordability crunch is the continuation of an ongoing quagmire in the housing market where a chronic imbalance between supply and demand is driving prices continuously higher.
According to U.S. Census Bureau statistics analyzed by ATTOM Data Solutions of 446 U.S. counties, 304 had median home prices beyond affordable levels for locals. As a result, the study found, a growing number of people are migrating away from high-prices, less affordable markets like Los Angeles. Rather, populations are growing in suburbs like Riverside and other parts of the Inland Empire where prices are more affordable.
Likewise in San Diego where it currently takes an annual salary of $139,000 to afford a median priced home in the County.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.625 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.