Housing affordability has been a sore subject for some time, with home prices growth have far outpacing wage growth in recent years. And with interest rates near highs not seen in decades, affordability has further worsened. The good news is that in the past two quarters, home affordability has improved, according to real estate data company ATTOM. The bad news is that affordability remains near the worst levels in 15 years as home prices stay close to all-time highs.
Further, major expenses on median-priced homes accounted for 32.3% of the average national wage in the first quarter, well above common 28% lending guidelines, ATTOM notes, meaning that homeownership remains difficult for average workers. Still, there are some housing markets that are quite affordable
To find the most affordable housing markets in the U.S., 24/7 Wall St. reviewed data from ATTOM’s 2024 U.S. Home Affordability Report. ATTOM analyzed median home prices and average wage data (from the Bureau of Labor Statistics) in 590 U.S. counties to find the percentage of average wages needed to pay for major expenses on a median-priced home with a 30-year fixed-rate mortgage and a 20% down payment. 24/7 Wall St. listed here the 50 counties where the lowest percentage of wages is required to afford a median-priced home.
Among the 50 most affordable counties, major expenses on median-priced homes account for as low as 11.9% of the local average wage to as high as 19.9% — considerably lower than the 32.3% of wages home expenses account for nationwide. In fact, in 26 of these affordable counties, home prices are not outpacing wages. (Also see: This City Has the Most Expensive Houses in America.)
Where are these counties? Well, no county on this list is in the West region. However, 23 are in the South (including five in Alabama and four in Louisiana), 16 are in the Midwest (including six in Michigan and five in Illinois), and 11 are in the Northeast (including eight in Pennsylvania). While home prices in these counties tend to be among the lowest, annualized wages are not necessarily as low.
The most populous counties on the list are home to over 1 million residents and include such metro areas as Detroit, Philadelphia, Cleveland, and Pittsburgh. Other large metros in the counties on the list include Memphis, Tennessee; Birmingham, Alabama; Baltimore; Toledo, Ohio; Mobile, Alabama; Flint, Michigan, and St. Louis.