Homeownership was slightly more affordable in the first quarter of 2023, according to ATTOM Data Solutions Q1 U.S. Home Affordability Report.
- Q-O-Q: The typical mortgage payment fell to $1,758 which represents 29.9%of average wages nationwide, down from 31.2% in Q4 but is still considered unaffordable by common lending standards, which call for a 28% debt-to-income ratio.
- Y-O-Y: Homeownership costs are up 5 percentage points from the first quarter of 2022 when it was 25% debt-to-income.
Home Prices Stalling & Wages Rising. “The soaring housing market has finally come back down in much of the U.S., at least for now, while worker pay is growing. That’s produced some benefits for home seekers in the form of slightly better affordability, especially as lending rates have flattened out,” said Rob Barber, CEO for ATTOM.
- The nationwide median single-family home and condo price is up less than 1% from the fourth quarter to $320,000 in Q1 2023.
- Wages have risen 6% nationwide over the past year, with increases continuing into the second half of 2022 in most of the country.
Two-Third Of The Country Still Unaffordable. In 373 of the 572 counties in the report, homeownership expenses are considered unaffordable to the average local wage earner. An annual wage of more than $75,000 is needed to pay for major costs on the median-priced home purchased during the first quarter of 2023 in 50% of markets in the report.